But What About Me? I’m Not an Accounting Major
However, the study of accounting is still important to you. You need to understand accounting concepts, both for your professional career and for many aspects of your personal life. Accounting is the language of business. Trying to run a business without understanding accounting information is analogous to trying to play sports without understanding the rules of that sport or trying to drive a vehicle without understanding the rules of the road.
Finance students need to understand accounting concepts if they seek positions in investment banking, consulting, or in corporate as financial analysts. It is common for chief financial officers of large corporations to have a background in accounting. A management student seeking a career as a management trainee—with the ultimate goal of running a corporation or a corporate division—needs to understand accounting in order to be able to run, control, and evaluate the performance of a business unit. The CEO, who holds the top management position, must certify the accuracy of the company’s financial statements on a quarterly and yearly basis. The Sarbanes–Oxley Act imposes severe civil and criminal sanctions on CEOs who certify their company’s financial statements if the CEO knows, or should have known, that the financial statements are materially misstated. Marketing students must understand the principles of revenue recognition, as well as the obligations of a public company under the U.S. securities laws. A lack of this understanding has led some marketing/sales executives to become involved in improper revenue recognition schemes. Many of these executives have been subject to civil and criminal prosecution.
For reasons similar to those stated above, accounting is important for students majoring in supply chain management, business or data analytics, and other areas of business. Finally, accounting knowledge is helpful in many aspects of your personal life. Accounting concepts are integral to such everyday decisions as personal budgeting, retirement and college planning, lease versus buy decisions, evaluation of loan terms, and evaluation of investment opportunities. Since accounting skills are designed to help you make better economic decisions, you will be using these skills for the rest of your life.
- William J., Bettner M., & Carcello, J. (2021). Financial & Managerial Accounting 19th Edition. McGraw-Hill Education. ISBN13: 9781260247930
- Google Image (2021).