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Why should one study accounting?

Everyone could study Accounting. However, some people may get more benefit than others from studying Accounting. These include:

  • Those who would like to become accountants. This is an obvious answer. Those who would like to become accountants should study Accounting, preferably from its rudiments. Once a person becomes a qualified accountant s/he can work as an accountant, as a tax accountant, as an auditor, as a financial planner and as a financial adviser.
  • Those who would like to run their own business. Business persons may wish to learn accounting so that they would be able to manage the simple financial transactions of their business. Business people would also benefit from knowledge of Accounting in that they would understand what their accountant would be doing and what s/he would be telling them.
  • Those who would like to become managers. Managers do not need to know Accounting in order to draw the accounts of the business they manage, but it would be an asset for them if they know Accounting in order to be able to read, understand and interpret accounting information. They may need to make informed decisions based on the information held in accounting records.
  • People who would like to have a banking career. Such people need to interpret the accounting information, profitability and liquidity of firms which approach them in order to obtain a loan from the bank. Bankers need to distinguish between a healthy business and a failing business; between a sound business plan and a business plan which is likely to lead to failure.
  • People who intend to become stock brokers or financial intermediaries. Such professions require the person to be able to assess companies and investment proposals. Stock brokers and financial intermediaries should also be able to assess the financial situation of their clients, their portfolio and the best investment options for them.
  • People who would like to have accounting knowledge just for the sake of it. Accounting knowledge would also help people in their normal life, even if they do not intend to become accountants and auditors and they do not intend to have a business of their own. People knowledgeable in Accounting will be able to understand better a bank statement, how to make their own personal budget and to read and understand a pay slip.