May 15, 2023
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According to the U.S. Bureau of Labour Statistics, employment of accountants and auditors is projected to grow 5 per cent from 2024 to 2034. This is faster than the average for all occupations. Moreover, nearly 124,200 openings for accountants are projected each year over the decade.
One thing is clear: The scope of accounting is incredibly wide. Professionals can work with private companies, banks, or auditing firms. They could also offer freelance services for businesses and entrepreneurs.
That said, where do you actually begin accounting training? Think of this guide as your stepping stone. Here’s a brief introduction to essential accounting training for, you guessed it, beginners!
As hinted earlier, accounting is a broad term that branches out to sub-fields like bookkeeping and tax preparation. You will find numerous moving parts that make up accounting, including:
To further break things down, let’s say accounting has three main purposes:
Accounting is used by all businesses, irrespective of their size. Startups, medium-sized enterprises, and large corporations, you name it. Even individuals learn basic accounting skills to manage personal finances on their own. And let’s just say it pays off in terms of satisfaction and complete transparency.
Your next step in accounting training would be understanding key accounting concepts. Start with differentiating assets, liabilities, and equity. Then, understand how a business must view and handle income and expenses.
Other core concepts include:
There are four types of financial statements you should know as a beginner accountant:
Income statement - it calculates revenues, expenses, and resulting net income or loss
Cash flow statement - it breaks down the inflow and outflow of cash and cash equivalents
Balance sheet - it provides an overview of assets, liabilities, and equity
Statement of owner’s equity - it shows the change in the ownership interest of a business
As hinted earlier, accounting has numerous branches, and bookkeeping is among the most lucrative. Bookkeeping skills will help you excel in the field of accounting.
Core skills include:
You can take professional bookkeeping courses, such as those by Intuit Academy. They will teach you everything from core concepts to business-specific regulations.
As an accountant, you will collaborate with multiple individuals, teams, and stakeholders to streamline a business’s financial records. Therefore, focus on strengthening soft skills. This can include:
Other technical and future-focused skills include:
Accounting is an ever-growing field. You can learn accounting to handle personal finances or to offer professional services to businesses.
Cash flow is the money moving into and out of your business. It's vital because it shows you have enough cash on hand to cover all your expenses, like payroll and rent, with some left over for growth or emergencies. Good cash flow is a sign of a healthy, stable business.
You should review your cash flow at least once a month. If your business has a lot of transactions or is in a fast-moving market, you might want to check it more often. Using simple accounting software can make this process much easier and give you clear reports.
Your cash flow forecast should include all your expected income, like sales projections, and all your anticipated expenses, such as salaries, rent, and utilities. Also, add any debt payments and planned major purchases, like new equipment, to get a complete picture.
You can start by negotiating better prices with your suppliers, especially for bulk orders. Using a business credit card for purchases can also help by giving you more time to pay. Always look for opportunities to get more value without sacrificing quality.
Send your invoices as soon as the work is done. Be very clear about what the price includes to avoid any confusion later. Keep track of all your invoices and don't hesitate to follow up politely if a payment is late. Using an invoicing tool can help automate this for you.
If you're struggling with financial planning, consider getting support from a professional. A business coach from a firm like Robin Waite Limited can provide expert guidance to help you create a solid financial strategy and improve your cash flow management.
