Is Accounting Hard: Basic Things You Need to Know

If you found this accounting article, then you’re probably wondering if accounting is hard or easy. Also, there is a good chance that if you ask an accounting student if accounting is hard, you will hear them lament all the stress that comes with it. 

If you work with an accountant and ask this question, he or she will probably say that you are smart not to delve into it. So, is accounting hard? The short answer is no, but it is more complicated than some like to think. 

I will do an in-depth analysis of accounting and show that it is not too hard for most students. Be ready to do the work that is necessary to become an accountant, and reap the rewards of a stable and growing job field. I encourage you to read on and learn more about whether accounting is hard for people. 

What is Accounting?

Accounting is the process of keeping records of business transactions and reporting this information in financial statements. In general, it encompasses the recording, processing, and communication of financial information about economic entities. The basic objective is to provide financial information in the financial statements to the decision-makers. 

Understanding the Importance of Accounting

1. Studying accounting leads to a career path

It is safe to say that almost every business operates with some sort of accounting. You would be hard-pressed to find an organization that can survive without keeping track of its finances. Therefore, studying accounting will always help you find a career path after school.

If you graduate in accounting, you will be offered a wide range of career options, from auditing, bookkeeping, and many more. Studying accounting will help you understand more about the business expansion process.

2. Entrepreneurship is an option

There are many misconceptions when it comes to accounting. A great accounting program will teach you the ins and outs and lead you to success. Future entrepreneurs who decide they want to be their own boss will find that going into this field is a great choice. It’s important to learn the reasons why accounting is hard, so you can develop skills to conquer them.

SEE: Get in on social entrepreneurship ideas

3. Accounting is a stable and growing job field

Accounting is one of the fastest-growing and most stable industries. It will never be obsolete. In fact, many professionals believe that the steadily increasing importance of accounting in all businesses should lead to even more growth in this field.

It’s not overly hard to learn to account, so it’s a perfect industry for anyone looking for stability in their career. If you’re considering whether or not an accounting degree is the “right” career choice for you, know that accounting will always be a vital part of every business.

4. Facilitates decision-making for management

Accounting is a vital part of an organization’s success. The accounting function provides the financial information for management, financial institutions, and investors on which to base decisions. We all know that without accounts of the past, we don’t know where to take things next. 

Even large corporations like Nike, Tesla, or Microsoft relied on the financial statements of past years to inform their decisions for this year’s budgets and policies. Therefore, accounting as a record-keeping process is very important because it lays the foundational basis for managers and leaders to make critical decisions.

5. It has a favorable earning potential

Anyone who has started their own business or who aspires to start one can tell you about the importance of accounting. These are just a few of the reasons that accounting has a favorable earning potential. With so many opportunities ready to be taken, there is a high demand for accountants.

Good accounting practices are the cornerstone of any successful business. Accounting is also a career that pays well. Generally, accountants make about $83,000 per year or about $39.26 per hour.

Why Do People Think Accounting Is Difficult?

1. Maths is hard for most people

Math is one of the core elements of accounting, and when people think about math, they get scared. Math is hard for most people. Most people feel that they are not as “math smart” as others. 

This “math anxiety” is generally found in accounting, as it includes things like fear of using a calculator, fear of being unable to balance a checkbook, etc. Not all accounting needs advanced math skills. However, some equations can intimidate people into thinking that they won’t be able to do them.

SEE: Learn about how to get better at math

2. There is a lot of paperwork involved

Accounting requires a lot of paper. Each transaction requires a duplicate, then one that gets attached to your supplier’s invoice and one that is sent to the recipient, which they attach to their invoice. While accounting comes with a lot of paperwork, which can make it seem difficult, it’s all worth it in the end.

3. There are a lot of different concepts that need to be understood

You have probably heard someone say that accounting is hard. And yet, logically, you may feel overwhelmed and confused about how to learn to account. Accounting includes many different concepts, from debits and credits to generally accepted accounting principles and balance sheets.

Accounting doesn’t have to be hard—in fact, it doesn’t even have to be complicated. In learning to account, students must understand numerous abstract, theoretical, and intangible concepts and systems.

4. Some people are afraid of the CPA exam

The Certified Public Accountant (CPA) exam is notoriously hard and justifiably so. The CPA exam sets the bar for the profession to make sure that only the highest level of accountants gets through. Despite that, there’s still no reason to believe that accounting is a difficult major or field. 

Thousands of people have successfully passed the CPA exam, so why are so many people intimidated by it?  Some people lack confidence in their test-taking skills, but most people just don’t know what to expect. Give yourself a competitive edge by preparing.

Are There Any Basic Skills You Need to Learn to Become a Professional Accountant?

Hitting books is the most important thing a student can do to prepare for a career in accounting. You’ll need good grades to land an internship, which is key to landing your first job. 

Accounting isn’t difficult if you understand a few basic concepts and follow some simple rules. But accounting isn’t a subject that you can memorize and be done with, like learning French or knowing the capitals of all fifty states. 

Well, accounting isn’t easy, but there are a few skills you need to have at your disposal. Whether you’re heading into the world of accountancy straight from school or looking to take your next career step towards the world of commerce, it helps to know some basics.

When it comes to choosing a career path, we often focus on the skills we want to perfect rather than the skills that are in demand. We need to be more practical in our approach and consider studying accounting. 

Many headhunters say they struggle to find talented accountants while companies are demanding more of them. Perhaps this is because accounting is considered a difficult profession by many students. To become a professional accountant, you need to study hard, pay attention, and memorize a lot of information.

SEE: Explore the 21st-century skills

What is the Role of An Accountant?

Accountants are the money management professionals of the business world. Their primary responsibility is to maintain a company’s financial records, ensuring they are accurate and up-to-date. 

As well as keeping track of costs and income, accountants calculate tax liabilities and may advise on how to deal with them most profitably. The following are the basic job roles of accountants.

  • Assist with all record-keeping
  • Bookkeeping
  • Tax advice
  • Help with budgeting
  • Prepare financial statements for investors, banks, and the public
  • Payroll management and sick days can be predicted
  • Take advantage of tax incentives and benefits to reduce costs and increase profitability
  • Plan preparation and review to avoid unnecessary tax liabilities and late fees
  • Verify and record monetary transactions
  • Consult with business owners

In a nutshell, the job of an accountant is to try to ensure that the money comes in where it is needed and that everything adds up. This can mean advising on whether to expand or contract or if funding should be allocated differently. A good accountant will ensure all of this is in line with government regulations and tax laws. 

Furthermore, talking about money does not always make for great conversation, so don’t expect your work as an accountant to be full of excitement. Accounting is still a good choice if you enjoy the practical application of math and can deal with long hours for low rewards.

SEE: Here’s how you can make more money as an accountant

FAQs

Who should consider becoming an accountant? 

If you like working with numbers, doing math for a living, crunching the numbers, and working on a team to get them just right, then you may be a perfect candidate for accounting. The work can be demanding, but it can also be very rewarding. Accounting is a great career for individuals who are detail-oriented and enjoy working in the business world.

What are the job prospects for accountants?

The job outlook for accountants is very promising because accounting has become increasingly complex. Many people have found success in the accounting field and have gone on to achieve great things. There is nothing wrong with going into accounting as a profession and with a long-term career in mind. Keep in mind that there is a lot of work involved and that this is not something to be taken lightly.

Can you get your accounting degree online?

Yes. There is no doubt that having the option of getting your accounting degree online can be great convenience to prospective and current students. You can avoid complaints from your boss about taking so much time off or making late meetings. You can also get to choose when and where to do your schoolwork.

SEE: Explore the most marketable degrees you can get online

Accounting Is Not as Bad as You Think

Accounting may be one of the most complex and misunderstood subjects in our everyday lives. If you wish to understand it better, it is best to consider the nature of accounting. Unlike other subjects, it is not based on theory but actual practice. 

It depends on the ability of a person to identify and analyze transactions for both financial and management purposes. Accounting is about recording and interpreting financial information using an accepted format. 

The interpretation will depend on the preferences of the user. The process of accounting is fairly simple and transparent. Though it is complex, accounting is not as difficult as it seems to be. Accounting is not hard if you have an interest. 

Even though it can be a challenge to understand some of the technical aspects, with the right study skills and proper tools, accounting can seem like a walk in the park. You can also read more about MBA. In the article, you’ll learn what it is, its importance and why you might need to get the degree.

Thanks for reading.