Accounting ~ Knowing The Numbers
If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them. ~Henry David Thoreau, Walden
To be good at your business, you have to know the numbers. Any business success comes back to the numbers. Your Assets, Liability, Equity, Revenues, and Expense will give you a wide information to make a decision on the current economic conditions, change of trend in how people spend their money. You will rely on them to make decision and evaluate your performance. That is true whether your job involves marketing, production, management, or information systems.
In every business, whether it is in a big companies or even a start up companies, accounting and financial statements are very important. It is the means for communicating the numbers. If you don’t know how to prepare and read financial statements, you can’t really know your business. Whether it is a good decision to expand or not, whether you sold a profitable product, or even when you choose to have a flexible or tight financial policy.
Accounting will help you a great advantages, because a working knowledge of accounting is desirable for every field of endeavor. As an owner or CFO of an enterprise, you will need to understand where the enterprise’s cash comes from and where it goes in order to make wise business decisions for the better future. For every economic situations need an appropriate decisions to grow, survive, or even to be liquidate.
Accounting will help you in developing the best strategies in marketing a product to soar the sales in a best way. Making a sale is meaningless unless it is a profitable sale. Marketing people must be sensitive to costs and benefits, which accounting will helps them to quantify and understand.
Accounting will also help you in analyse a business. Do you want to have a broadening view as a banker / investment analyst? These fields will rely heavily on accounting. In all of them you will regularly examine and analyse financial statements. In fact, it is difficult to get a good perspective without two or three courses in accounting.
How might accounting help you ?