Question

How can information you learned in principles of accounting be applied to your life and/or work to increase your future success?

Answer 1

Accounting is the mathematical calculations of how financial transactions occur in a business. Or, it is the language of business, showing what has happened and providing the financial information to forecast what will happen in the future.
Accounting classes teach individuals how to track and record financial transactions for a business. The will help for future success, as this is one of the major skills that business individuals need in order to succeed. Without an understanding on how to account for transactions, individuals may not be able to understand what is occurring in the business and how to prevent back activities from occurring.

For example, accounting skills can be used to analyze the grades you received from assignments and exams. By recording and summarizing that data in a spreadsheet, you can analyze it and pinpoint the subject areas that you need the most help with; then you can easily focus on ways to improve your grades. Also, you can further break down the recorded data and analyze the amount of time you spent on each of those assignments. Once you identify the subject areas that you are weak at, you can devote more time to them or seek out tutoring services. In fact, tutoring services are also offered by American Public University (APU) to students that need additional assistance with their courses.

Additionally, accounting skills can come in handy when it’s time to manage your spending. With college tuition, books and supplies, and living expenses, your cash outflows can get out of your control. Obviously, if your cash outflows are greater than your cash inflows (whether it be from federal student aid or work), then you are not budgeting wisely. However, if you record and summarize your cash flow activities in a spreadsheet, such as Microsoft Excel, you can easily analyze that financial data and adjust your spending habits accordingly.

Furthermore, accounting skills can also be applied when it comes down to making smart financial investments. With accounting skills, especially when acquired from an accounting degree program, you are able to make wise investment decisions. For example, if you decide on investing your hard-earned money on a company’s stock, being able to compute profitability, liquidity and debt ratios, you can analyze a company’s publicly disclosed financial statements; and thus make good investment decisions based on your analysis.

Best of all, accounting skills are well sought after by employers. Practically every organization requires an accountant with accounting skills to help keep track of the day to day financial activities. In fact, according to the Bureau of Labor Statistics (2012), the projected employment growth rate for accountants and auditors between years 2010 and 2020 is 16%, while the average growth rate for all occupations is only 14%. Therefore, employment prospects are bright for those with the required accounting skills.

Accounting skills are very practical, and can be applied to many areas of your life. As mentioned, accounting skills can be applied when analyzing course grades, managing expenses, or making smart financial investments. Also, accounting skills are in demand by employers. For that matter, you should acquire the necessary accounting skills and make life easier.