Why Is Accounting Important?

Topics: Profit, Management, Expense Pages: 2 (453 words) Published: April 10, 2011
Discuss how the accounting course has affected you in your professional development as a student and as a person as well as encouraging you on your academic path.

During my younger days, I used to take principle of account (POA) in my secondary school. I could neither understand the subject nor know the important of how accounting will impact my career path. I have stop studying for 2 years due to national service and when I know that basic accounting was one of my foundation subjects, I was so afraid that I could not make it again. A big thank you to my basic accounting lecturer, Simon, who makes teaching so easy to understand and show me how relevant is it to life. What is accounting? Accounting is a must have in whatever business you are doing regardless of sizes. It tells you if you are make money or losing money. If you create a profit and loss statement each month, you can ascertain your position quickly. If you are losing money, you can make changes in your operations and correct the situation long before the year’s end. This ensures that your overall year will still be profitable. If you think that accounting is just about making deposit, issuing checks and paying taxes, you are wrong! How about your profit? What percentage of revenue do you spend on marketing each month? What about labor or supplies? Even in a small business, you need to be in control of yours expenses. If you do not track and control these expenditures, you are not managing your business. You are just blindly hoping that your business will make profit someday. Some people think that money makes the world go round. They would make a statement like,’ I can hire a bookkeeper or even buy a good accounting software program which can help me organize my accounts’. Well, you still need to understand the basic principles of accounting. This will allow you to use the information supplied by the bookkeeper or software program intelligently, enabling you to make the changes in your business...
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