Why is studying accountancy important for students?

Accounting is considered the universal language of business and makes it an obligation of professionals to be well-versed in it. It requires years of practice from individuals to develop the proficiency to employ the complex concepts of accountancy. In the current syllabus, accountancy is a subject introduced to students in grade 11 of the commerce stream. If we teach children from an early age at an appropriately challenging level, they can grasp these concepts without additional input. 

It provides an understanding of business basics and implants an entrepreneurial sense in young minds. With the same, they grow up to be more responsible and financially disciplined individuals. Awareness as such allows them to manage the businesses for their employers or their own. The significance, goals, and benefits of accountancy will be illustrated through this blog. 

What is accountancy?

As per the words of Smith and Ashburne, “Accounting is 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 a financial character and interpreting the result thereof.”

In simple words, accountancy is the process of bookkeeping and communicating financial information about an organization or individual. It may involve collecting the details relating to overall financial activities or capturing the snapshot for a specific time frame. Following are some of the accounting activities:-

• Bookkeeping of the transactions
• Storing financial information
• Compiling financial records, reports, and statements
• Tax filing and returns
• Ensuring compliance with the law relating to finance

There are two types of accounting:-

• Financial accounting: It involves the preparation of a viable financial statement. In this method, subtle facts are considered to precisely evaluate a company’s performance through meticulous reasoning. This type of accounting facilitates both outside parties and internal management. 
• Management accounting: It involves compiling the required data to conduct financial accounting. A more informed decision-making process concludes as the output of this type of accounting. 

What is the objective of learning accountancy?

The main objective of teaching children the concepts of accounting is to make them financially literate and prepare them with the corporate norms to face the challenges of tomorrow. Teaching children accountancy slowly and steadily and with an appropriate level of difficulty fulfils the following purposes:-

• Arithmetic skills: By learning accounts, students develop and learn to make more sensible use of their arithmetic skills. It develops a great level of mathematical and statistical proficiency that helps them in several other places, like trading, financial analysis, sales tracking, etc. 
• A better understanding of business and economics: Finance is the key to business operation and running the economy. Accountancy is the foremost element of finance, and its importance is paramount. A better understanding enables them to understand the implications of global events and forebode an appropriate conclusion. 
• Career options: The study of accountancy may develop an aptitude and can have a successful career in finance. Chartered accountants, financial analysts, investment bankers, portfolio managers, etc., are finance-based careers and are high-salaried jobs.  

How does studying accountancy contribute to the holistic development of children?

The following are the reasons that make studying accountancy an appropriate recipe for the holistic development of children:-

• Teaching children the value of money: Money value and savings are some of the things children may realize by studying accounts. It motivates them to manage their expenditure and spend an appropriate amount of money. children may also learn to begin saving money from the allowance they receive from their parents. 
• Children learn the cash flow and its significance: Cash flow refers to the reciprocation of money or assets of equivalent value in the market. Understanding the cash flow invokes financial wisdom in children. It also implants the seeds to create business persons of tomorrow by making them more aware and mature. 
• Decision-making capabilities: The understanding students develop by grasping the advanced concepts of accounts enables them to make more informed decisions. The same provides them with a dynamic profile that is appreciated by employers and recruiters and creates the foundation for being a successful entrepreneur. 

Concluding remarks

The constant evolution in the market is going to create a more challenging environment in future, and preparing for the same from an early age may deliver a better outcome. Accountancy is the universal language of business and provides insight to students that enables them to understand corporate norms. Apart from the main goal of making students financially literate it develops entrepreneurial sense in them and makes their professional profile more compelling. Are you searching for the best option among senior secondary schools in Bangalore? The National Public School is the best choice for you.