Financial Accounting, in simple terms, is the process or work of keeping financial accounts. In a broader sense, accounting is defined as being the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character and interpreting the results thereof.
Financial Accounting is so important that it opens doors in every kind of business. However, it is not just confined to business only. Accounting is important to anyone who deals with money. In this way, learning and improving accounting skills is not much less important than it is for professional purpose. At this point, it is appropriate to mention some of the basic accounting skills: They are as follows:
- Understanding about the basic accounting equation
- Being familiar with accounting terms
- Passing Journal entries
- Making Reconciliations
- Problems solving ability
- Financial Reporting
There are several benefits that you can extract from learning and improving accounting skills. One of the most important benefits of accounting is that it helps you to analyze financial information using the strong knowledge of accounting, so that you may arrive at effective decisions in terms of money. Moreover, it enables you to keep track of your income and expenses – preparing income statement, while aiding you greatly to determine your financial position at a point in time in the form a statement called balance sheet.
Regardless of the reasons, whether it is for professional or personal purpose, anyone who is interested can improve accounting skills. if you want to learn accounting and attain the level from where you can further enhance your skills successfully, then, you may find this article with presentation helpful. Here are some ways you can learn and improve your accounting skills.
In order to get general overview of basic accounting principles and concepts, it is better to buy a book that provides explanations and examples. Books written for absolute beginners are helpful, such as accounting for dummies. It must be noted that publishing such books is generally intended for those who have no prior knowledge about the concerned subject and to help the readers improve their skills appropriately.
Remember that teachers matter – Nothing can replace a good teacher. The importance of an effective teacher or a tutor cannot at all be ignored. The Problems that seem to be difficult can turn out to be easy under the guidance of a well experienced and effective teacher. It’s therefore advisable to take an accounting course or classes that you may learn effectively and efficiently.
Accounting is based on a double entry system which means every financial transaction has two effects involving two different accounts. It further indicates that every transaction which is recorded in accounting records must have two journal entries: a debit and a credit that in turn leads to satisfy the equation: Assets = Liabilities + Equity
Being conceptually good is a good way to improve your accounting skills. The concept of debits and credits is actually the most important thing to get mastery over. A debit is a financial entry on the left side of the T-account which either increases an asset or expense account, or decreases a liability or equity account, whereas, a credit is also an entry shown on the right side of the T-account that either increases a liability or equity account or decreases an asset or expense account. However, understanding well the rules of debits and credits will strengthen the basis and let you improve further in a successful manner.
In addition, it is very important to apply your knowledge practically whenever it is necessary. This will enable to find where you are wrong and what else to be done to bring more improvements in the process of learning and improving your accounting skills.
K. A. Fareed (Fareed Siddiqui)
Writer, Trainer, Author, Blogger, Software Developer
BBA, MBA-Finance, MPhil-Financial Management, (MSc-Software Engineering)
Post Graduate Diploma in Computer Applications and Programming
Certificate course in English language proficiency
Level 1 – Leadership and Management ILM – UK
Individual Member of Institute of Management Consultants of India