Accounting is the study of recording transactions, performing internal audits, and keeping financial records. Accounting also involves creating and submitting reports and other financial documents to managers, stakeholders, business owners, and external auditors.
Accounting is all about answering questions like: What’s the current and long-term financial health of the department or company? In the last quarter, did we make a profit, drew even, or had losses? Which are the highest costs? Is the asset value increasing or decreasing? What are the current liabilities?
There are two major Accounting branches: Managerial Accounting and Financial Accounting. The former only creates reports that are shared internally, works with estimated amounts, and makes financial predictions about the future.
The latter creates financial statements that are shared internally, externally (with stakeholders), and even publicly. It only works with actual numbers, not estimations, and generally analyses past data and financial transactions.
Students who enrol in Accounting programmes take classes in Business Information Systems, Commercial Law, Financial Reporting, Money and Banking, Business Law, Micro and Macroeconomics, Legal Obligations, Taxation Theory, Business Ethics, etc.
Accounting graduates choose from career options such as: accountant, payroll clerk, economist, tax adviser, management consultant, retail banker, auditor, treasury analyst, cost estimator, anti-money laundering specialist, chief financial officer.
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