Benefits of studying Accounting and Finance
Introduction
Accounting and finance is the systematic process of identifying, measuring, and communicating financial information to stakeholders. Accounting and finance are essential elements of business operations. Accounting involves the process of recording, classifying and summarizing financial transactions to provide useful information for decision making (Jorge Rodrigues da Silva et al., 2021). This includes activities such as financial reporting, budgeting, forecasting and more. It is often referred to as the “language of business.” On the other hand, finance is the management of funds and resources allocation. Together, accounting and finance form the foundation for understanding and managing the financial aspects of businesses and organizations.
Accounting and finance are essential to the functioning of modern economies and play a vital role in the decision-making process of businesses and organizations. The field of accounting and finance is constantly evolving and adapting to the changing economic and technological landscape, making it an exciting and dynamic field of study (SAMSURI et al., 2016). It involves a wide range of specialized areas such as financial accounting, management accounting, financial management, investment, and financial analysis.
Furthermore, the study of accounting and finance is not limited to the business sector, it is also relevant to the public sector, non-profit organizations, and individuals (Jaqua & Jaqua, 2021). The knowledge and skills acquired through the study of accounting and finance are highly transferable and can be applied in various fields, including business, government, and not-for-profit organizations.
Accounting and Finance is a diverse and integral field of study that encompasses the identification, measurement, and communication of financial information. It provides the foundation for understanding and managing the financial operations of businesses and organizations and is essential for success in the modern economy.
Overall, the thesis statement for this research paper is that “Accounting and finance are widely recognized as essential fields of study with ongoing job opportunities (Jaqua & Jaqua, 2021). This essay aims to explain the reasons for their continued growth in demand and the benefits of pursuing a career in these fields.”
The purpose of this paper is to examine the significance of the fields of accounting and finance, and to demonstrate the global demand for these disciplines. (Chertkova, 2020) Additionally, it will explore the advantages that the knowledge and skills gained from studying accounting and finance can bring to the corporate world.
Additionally, this essay will examine the benefits of choosing a career in Accounting and Finance, including potential job opportunities and growth prospects in the future (Joshi, 2022). It will also delve into various factors that can contribute to success and advancement in the field of accounting.
Benefits of studying Accounting and Finance
Accounting and Finance are critical fields of study that have important implications for both individuals and organizations. They link the concept of money to business and management. There are several reasons why studying accounting, and Finance is beneficial.
First, accounting and Finance are in high demand. According to the Bureau of Labor Statistics, employment in the field of accounting and Finance is projected to grow by 6% from 2020 to 2030. This is faster than the average for all occupations (Jackson et al., 2022). With a growing economy, the need for accounting and finance professionals will only continue to increase. Companies from every area of interest require accounting professionals to manage their finances, i.e., budgets. Furthermore, with the increasing complexity of business and financial transactions, the need for skilled professionals in these fields is only going to grow.
Second, studying accounting and Finance can lead to high-paying and rewarding careers. According to the Bureau of Labor Statistics, the median annual salary for accountants and auditors is $78,820. (Chertkova, 2020) Similarly, finance professionals have the potential to earn high salaries as well. These professionals are often responsible for managing large amounts of money and making important financial decisions. While studying these courses can pave the path for many career opportunities, it must be noted that some options may require long hours and focus. Some of them may be subject to high stress or pressure. So, it is important to consider the career limitations when choosing this field.
Third, studying accounting and Finance can provide a solid foundation for various career paths. Whether an individual wants to work in the private or public sector, in a small business or a large corporation, or in a specific industry, a background in accounting and Finance can provide a strong foundation. (Oben & van Rooyen, 2022) Additionally, with the increasing globalization of business, the ability to understand accounting and finance principles is becoming even more important to succeed in a global marketplace. While the accounting and finance industries are constantly evolving, with new terms and technologies being introduced and inducted into the business models regularly, it has been ensured that students or professionals related to the field must remain current with trends. This will prove to be a disadvantage in their career for students who don’t follow the industry and are not interested in keeping up with changes.
Studying these courses generally requires strong analytical thinking and problem-solving skills. These skills are important because they allow the professionals to identify the issue (financial) by analyzing data and developing effective solutions for the businesses. These skills are helpful in a professional environment and can be used in various aspects of the personal lives of individuals who study these courses.
These courses ensure that students have a versatile skill set applicable across a whole set of industries and sectors. This skill set comprises financial analysis, risk management and budgeting, etc., vital for various roles, i.e., accounting, management, and Finance. This versatility makes students a highly likeable choice by employers. It can be said that most of these skills rely on mathematics, i.e., complex technical calculations and concepts. Thus a student who struggles with math or who is not a detail-oriented person, in general, will find these courses challenging, as the professionals have to pay attention to minute details.
Studying accounting and finance courses can help individuals in enhancing their communication skills, which involve getting better at the ability to communicate financial information to different stakeholders involving investors, clients, and other professionals. This is highly responsible for building trust and credibility, which is important for career growth in the field, as the professionals in these fields are held to high ethical standards. Studying these courses may expose individuals to ethical challenges and dilemmas that can be hard for them to avoid, and they may get entangled in them.
Last but not least, studying accounting and Finance can help individuals develop critical thinking, problem-solving and analytical skills (Jorge Rodrigues da Silva et al., 2021). These valuable skills are in high demand in today’s job market. Additionally, working with numbers and complex financial data is a skill that can be applied to a wide range of careers.
Growth and job opportunities
Accounting is an essential department in every business and industry. Unsurprisingly, the demand for these professionals, i.e., accountants and auditors, is only expected to grow further. Digital technology is affecting the accounting sector, and accountants’ roles are being redefined accordingly. It is an important field that, even in the era of digitalization, you need to keep everything on track. Accounting and Finance belong to those dynamic fields that offer diverse job opportunities. This section will discuss the job opportunities and growth aspects in Accounting and Finance.
A wide variety of organizations employ accounting and finance professionals, including public accounting firms, private companies, government agencies, and non-profit organizations (Bin & Cang, 2009). Within these organizations, accounting and finance professionals can hold a variety of roles, including:
· Auditing and Assurance: Auditing and assurance professionals ensure that an organization’s financial statements are accurate and comply with relevant regulations. They are responsible for maintaining financial records, preparing tax returns, and ensuring that the relevant laws and regulations are followed and that all financial processes comply with them. They also provide advice on accounting and financial reporting matters. Internal auditors earn up to $90,000.
· Taxation: Tax professionals advise organizations and individuals on how to comply with tax laws and regulations and help to minimize tax liability. Starting salary for accountants in Taxation is $49000 and goes up to $73000.
· Financial Planning and Analysis: Financial planning and analysis professionals help organizations to make informed decisions by providing financial analysis, forecasting, and budgeting. They help individuals and businesses in coming up with and implementing financial plans that are targeted to meet their goals and objectives. They also help businesses and individuals in their decision-making regarding where to invest. They do so by analyzing the financial data and market trends. They have job vacancies available in planning firms, banks or insurance companies. Their salary range is $53000 — $86000.
· Risk Management: Risk management professionals help organizations identify and manage potential risks, such as credit and market risks. According to estimates, risk managers earn around $81,000.
· Investment Banker: Investment bankers are responsible for raising capital for businesses and the government by underwriting and selling securities, i.e., stocks and bonds. These types of vacancies are available in investment banks, commercial banks, and other financial institutions.
Furthermore, the field of accounting and Finance offers ample opportunities for career advancement. The field continually evolves, and new technologies such as automation and data analytics create new opportunities for professionals with the right skills. Additionally, the increasing globalization of business creates demand for accounting and finance professionals who can navigate cross-border transactions and regulations.
· Increasing demands: The demands for professionals in accounting are increasing across all industries. According to a recent study, accountants and auditors, bookkeepers, financial analysts, loan officers, and clerks are among the top jobs in demand.
· Advanced Degree and Skills in Higher Demand: As the complexity of regulations and financial laws becomes more and more complex, the demand for accountants with higher degrees and experience, along with refined skills, is increasing rapidly. This includes knowledge of tax laws, financial reporting, and data analytics. According to a survey, accountants with higher degrees and more refined skills will be in higher demand in the upcoming future (Pincus et al., 2017).
· Job Security: These jobs offer job security, as their demand is expected to grow, and the skill set developed through these courses is transferable across different industries, as discussed above. This provides evidence that individuals with an accounting background are highly likely to have a more stable and secure career as compared to other jobs in the world.
· New Job Vacancies: As the demand for these professionals increases, it is highly likely that new vacancies will emerge. These will involve roles such as financial analysts, tax accountants, auditors, bookkeepers, and financial managers. According to Robert Half’s Salary Guide, above mentioned roles are some of the fastest-growing accounting and finance roles.These roles not only provide individuals with an opportunity to work in diverse fields but also provide them with a chance to gain experience in different areas of accounting and Finance.
· Emerging Technologies: The business world continuously evolves, and new technologies are continuously being adopted into business models. Emerging technologies such as cloud computing, artificial intelligence, and blockchain technology are transforming the accounting and finance industry. This has led to new job roles, including data analysts, cybersecurity specialists, and technology consultants.
· Globalization: Accounting and finance professionals who can work across borders and understand the complexities of international trade and investment are in high demand due to globalization. As a result, job opportunities in multinational corporations and international organizations have increased.
· Regulatory Changes: Regulation changes, such as the Tax Cuts and Jobs Act of 2017, have created new challenges and opportunities for accounting and finance professionals. As a result, tax specialists and consultants are in high demand.
· Competitive Salaries: Accounting and finance jobs provide competitive pay. In May 2019, the median annual wage for accountants and auditors was $71,550, according to the Bureau of Labor Statistics. Furthermore, the top ten per cent of accountants and auditors earned more than $124,450 per year.
Risks from accounting and Finance:
Accounting and Finance is a sensitive department of any organization, and it deals with all the cash flow in the company and thus has great importance and is at great risk. The risks related to accounting and Finance include fraud, errors, cybersecurity risks, laws and regulatory risks, reputation risks etc.
Within an accounting and finance department, there is always a chance of fraudulent acts like embezzlement, misuse of funds, or falsification of financial data. The management of financial records and guaranteeing the accuracy of financial reporting are under the purview of the accounting and finance departments. The possibility of mistakes and omissions in financial records increases the likelihood that financial reporting would be erroneous, which could harm the organization’s standing and financial stability. Accounting and finance departments are prominent targets for cyberattacks like hacking or data breaches since they frequently deal with sensitive financial data and information (Eaton, Grenier and Layman, 2019).
Tax laws, accounting standards, and criteria for financial reporting are just a few of the laws and regulations that accounting and finance departments must abide by. Penalties or legal repercussions may follow failure to adhere to these rules. The accounting and finance departments are in charge of preserving an organization’s financial integrity. Any financial reporting errors or poor management could harm the organization’s reputation and cause stakeholders to lose faith in it.
Technological Advancement
The accounting field is constantly evolving, and new technologies are playing a major role in this evolution. A noteworthy technological development in recent years is the advent of data science. Data science is helping accountants to analyze and interpret large amounts of data in a more efficient and effective way. (Oben & van Rooyen, 2022)
Data science can help increase accounting efficiency by automating repetitive tasks like data entry, record keeping, and report generation. This frees up accountants’ time for more strategic tasks like analysis and decision-making. It can also improve accuracy by reducing errors that can occur when manually entering data. Data science can reduce the risk of errors and improve the accuracy of financial reports by automating data entry and analysis. Data science can be used in accounting for predictive analytics, which can assist accountants in identifying potential issues before they occur. (Maryville Online, 2021) Predictive analytics, for example, can aid in the detection of fraudulent activities, forecasting cash flows, and forecasting future trends. Data science can also be combined with other technologies, such as artificial intelligence and machine learning, to further improve accountants’ abilities. These technologies can assist accountants in more quickly and accurately analyzing and interpreting data, allowing them to make faster and more informed decisions. Data analysts, data scientists, and business intelligence analysts are examples of new occupations made possible by the use of data analytics. These experts collaborate with accountants to examine financial data and offer perspectives on how well businesses are performing (Richins et al., 2017). The accounting industry is adapting to the expanding need for ethical corporate practices. The measurement and reporting of environmental, social, and governance (ESG) performance is becoming a growing responsibility for accountants (Tettamanzi, Venturini and Murgolo, 2022). Many money scams, frauds and corruption are done inside the companies because of the bad finance management system and accounting. Moreover, hacking and online scams are very common and can cause a huge loss to the company; hence we need the right technology to help us in these matters.
By generating a secure and transparent ledger of financial transactions, blockchain technology has the potential to transform accounting. Accountants are investigating blockchain for financial reporting, auditing, and other areas. It can revolutionize banking, accounting and finances. Efficiency gain: Accounting transactions can be performed more quickly and effectively with blockchain technology than they could previously. By doing away with human reconciliation, automation of transaction validation and verification lowers the possibility of mistakes and delays. A more transparent and auditable accounting process is made possible by the use of blockchain technology since each transaction is recorded on a decentralized, immutable ledger that is open to all authorized participants. This can help to lower the possibility of fraud and increase the accuracy of financial reporting. Due to its distributed and decentralized nature, blockchain technology is naturally secure. Accounting data is shielded from illegal access and manipulation thanks to the use of encryption techniques. Because blockchain data is transparent and unchangeable, audit procedures can be made simpler because auditors can easily access and check financial records without having to perform a thorough manual examination (Dai and Vasarhelyi, 2017).
As a result, they can make well-informed decisions and offer more worthwhile insights to their clients. New fields like Artificial Intelligence and Machine Learning are also helping accountants automate and streamline their work processes, making them more productive and efficient.
These technologies are also helping to improve the accuracy of financial reporting, which is crucial for maintaining the financial system’s integrity. Furthermore, integrating these new fields with accounting also provides career development and growth opportunities for accountants. In conclusion, incorporating new technologies such as data science, Artificial Intelligence, and Machine Learning enable accountants to remain current and competitive.
Conclusion
In conclusion, pursuing a degree in accounting or Finance can have various advantages and valuable skill sets, such as strong analytical and problem-solving abilities, improved communication abilities, a varied skill set, a wide range of employment options, and high earning potential. The accounting field has bright future growth potential due to the rising demand for specialists in the industry. Furthermore, the application of data science and other technology is revolutionizing the accounting industry, presenting new opportunities and difficulties for accountants. As a result, those well-versed in data science will be in a good position to benefit from emerging opportunities. Accounting and Finance are great options for anybody searching for a demanding and fulfilling professional path with room for advancement. With a consistent need for accounting and finance specialists across numerous businesses, the future of the accounting profession generally appears bright. The position of accountants and financial specialists will grow and become more crucial as the business world continues to change. As a result, investing in accounting and finance education and training can be a good career choice, paving the way for a successful and happy career with lots of room for growth and progress.
It is crucial to remember that there are advantages and prospects in the accounting and finance industry beyond conventional positions in corporate finance and accounting firms. Accounting and finance professionals now have more options to work in cutting-edge and exciting environments because of the emergence of startups and entrepreneurship. Also, there is a rising need for accounting and finance professionals who can assist firms in navigating and reporting on these difficulties due to the growing emphasis on sustainability and social responsibility. In summation, accounting and Finance are important professions that offer many advantages and chances to those pursuing them. The future of the accounting profession is bright and interesting with the introduction of new technology and the changing corporate landscape, making it a great career choice for anyone looking to develop a successful and fulfilling career.
References
1. Bin, X. & Cang, Z. (2009) Research on the Comprehensive Evaluation System of United Certified Public Accountants. 2009 ETP International Conference on Future Computer and Communication.
2. Chertkova, A.V. (2020) Studying the global use of International Public Sector Accounting Standards. Finance and Credit. 26 (11), 2524–2541.
3. Dai, J. and Vasarhelyi, M.A. (2017). Toward Blockchain-Based Accounting and Assurance. Journal of Information Systems, 31(3), pp.5–21. doi:https://doi.org/10.2308/isys-51804.
4. Eaton, T.V., Grenier, J.H. and Layman, D. (2019). Accounting and Cybersecurity Risk Management. Current Issues in Auditing, 13(2). doi:https://doi.org/10.2308/ciia-52419.
5. Gonçalves, M.J.A., da Silva, A.C.F. and Ferreira, C.G. (2022). The Future of Accounting: How Will Digital Transformation Impact the Sector? Informatics, 9(1), p.19. doi:https://doi.org/10.3390/informatics9010019.
6. Jackson, D., Richardson, J., Michelson, G. & Munir, R. (2022) Perceptions and experiences of career success among aspiring and early career accountants and the role of Organisational Support. Accounting & Finance.
7. Jaqua, E. & Jaqua, T. (2021) Rudimentary knowledge in economics, Finance, accounting and Benefits. International Journal Of Scientific Advances. 2 (4),
8. Jorge Rodrigues da Silva, R., Margarida Mendes Rodrigues, M. & do Céu Gaspar Alves, M. (2021) What has been published in Accounting Education Journals About Accounting Teaching? Accounting and Finance Innovations.
9. Joshi, P.L. (2022) A conceptual framework for the factors influencing the accounting students career choice as public accountants. journal of accounting finance and auditing studies (JAFAS).
10. LOUGHRAN, T. and MCDONALD, B. (2016). Textual Analysis in Accounting and Finance: A Survey. Journal of Accounting Research, 54(4), pp.1187–1230. doi:https://doi.org/10.1111/1475-679x.12123.
11. Oben, J.A. & van Rooyen, A. (2022) Social Cognitive Career Theory and rural high school learners’ intentions to pursue an accounting career. Accounting Education. 1–34.
12. Pincus, K.V., Stout, D.E., Sorensen, J.E., Stocks, K.D. and Lawson, R.A. (2017). Forces for change in higher education and implications for the accounting academy. Journal of Accounting Education, [online] 40, pp.1–18. doi:https://doi.org/10.1016/j.jaccedu.2017.06.001.
13. Richins, G., Stapleton, A., Stratopoulos, T.C. and Wong, C. (2017). Big Data Analytics: Opportunity or Threat for the Accounting Profession? Journal of Information Systems, 31(3), pp.63–79. doi:https://doi.org/10.2308/isys-51805.
14. SAMSURI, A.S., ARIFIN, T.R. & HUSSIN, S.B. (2016) Perception of undergraduate accounting students towards professional accounting career. International Journal of Academic Research in Accounting, Finance and Management Sciences. 6 (3),
15. Shekhar, Dr.C. (n.d.). Subject: Financial Accounting-I Course Code: BBA-104. [online] Available at: https://www.ddegjust.ac.in/studymaterial/bba/bba-104.pdf.
16. Tettamanzi, P., Venturini, G. and Murgolo, M. (2022). Sustainability and Financial Accounting: a Critical Review on the ESG Dynamics. Environmental Science and Pollution Research, 29(11), pp.16758–16761. doi:https://doi.org/10.1007/s11356-022-18596-2.
