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Why is
Accounting Important? |
If you are not
planning a career as a a professional Accountant, you may be asking
yourself:
"Why do I
have to take Accounting if I'm not planning to be an Accountant?" Here are
3 Reasons Why:
1)
BUDGETS & ACTUALS
If you are studying Business, Marketing, Advertising, Engineering, Fashion - or any
career; there will come a time when you leave school to seek a management
position or start and manage your own business. Managers manage many things, the
most important of which is the operational budget. A budget must be prepared and
then the actual revenue and expense must be compared to the budgeted figures,
typically each month. Explanations for variances are required by senior
management, the Board and owners.
The budget and the "actuals" are stated in Accounting language. As a manager,
you will be expected to converse in this language in terms of what impact your
department is having on the balance sheet and the income statement.
2)
PROJECTIONS & FORECASTS 'What if we do this?' is a recurring question in business. Among other
things, ideas ALWAYS raise these questions: How much will this cost and
how much money will we get back and by when? What's the effect on the bottom line? IDEAS YOU BRING TO THE
BUSINESS MUST EVENTUALLY BE EXPRESSED IN ACCOUNTING LANGUAGE
3) DON'T GET BAFFLED BY WHAT THE ACCOUNTANTS ARE SAYING