What is Accounting?

Before one can look at the different accounting courses available, one must first have a look at what exactly accounting is. Accounting can be described as the process of recording financial transactions, analysing financial data, and reporting on the financial position of an organisation.

The purpose of accounting is to provide accurate financial information that can be used for decision-making purposes within an organisation.

Accounting involves the methodical recording and reporting of a business’s financial transactions. It allows companies to study their financial performance and to analyse financial data. It further entails the identification, measurement and communication of financial information to allow for informed decisions to be made.

Various rules and regulations govern the accounting industry, such as the Generally Accepted Accounting Principles (GAAP). Although accounting is in many ways similar to bookkeeping, it also differs in many ways. The main characteristics of accounting are as follows:

  • It is abstract and theoretical.
  • It entails a process of drafting and analysing financial statements.
  • Accounting relies on bookkeeping records to provide the data that is to be analysed.
  • Accounting entails the preparation of budgets and proposals.

Don’t worry about not being able to find a field in accounting that might interest you, as there are lots of different areas and aspects of accounting that you will be able to choose from. You might be interested in studying Cost and Management Accounting, where you would handle the budget plan of a company. If that doesn’t interest you, then you may perhaps want to consider Business Accounting, where you would be responsible for analysing, recording, and identifying the financial events of a company. You may also want to consider Financial Accounting, which deals with financial statements and is extremely important in any company.

Accounting is such a valuable skill to have, as most companies need the services of an accountant in order to keep their finances on track. Accounting is a universal skill, which means that you will be able to use it no matter where you go. You will not be limited to working for one type of company, and if you have the right qualifications, you will be able to look for work overseas.

Making a decision about which course to study is extremely important, which is why you need to make sure that you are making the correct one. Talking to someone who is familiar with all aspects of the qualifications, courses, and entrance requirements is always recommended. We have also put together a list of colleges on our Colleges page.

We have thought up some questions that you may have with regards to accounting, and have taken the liberty of answering them for you. Click on any of the links below to find out more about accounting: