How Does A Major In Accounting Help Business Graduates?

The global race towards innovation has placed a higher demand on individuals to develop specialized skills that will help them enter and be successful in the workforce. Furthermore, businesses are constantly looking for ways to increase their competitive advantage by using new technologies, strategies, and tools.

One such vital skill that is essential for success in today’s business world is accounting. A degree in accounting gives students the necessary knowledge and skills to analyze data and create reports, which are essential for making sound business decisions. Additionally, accounting is a versatile skill that can be applied to many different businesses, from non-profit organizations to small private companies.

In the US alone, there is a projected shortage of accountants. Many employers seek candidates with accounting backgrounds who have undergone rigorous education and training in the field. A degree in accounting can help business graduates secure numerous job opportunities and launch successful careers in many industries.

Let’s explore the benefits of a degree in accounting for business graduates.

1. A strong foundation in business

Accounting is an essential component of any successful business. It provides a solid foundation for understanding the fundamentals of profitability and financial management. A degree in accounting gives students the tools and knowledge to analyze financial statements, understand how companies make money, and identify key financial risks and opportunities.

At its core, accounting is all about analyzing and interpreting financial data to help businesses make effective decisions. Those with a background in accounting are well-positioned to work as financial advisers, auditors, tax consultants, and consultants in various industries. To excel further and hone their skills, accounting graduates can pursue an online MBA in Accounting to gain advanced knowledge and skills. The program will help them advance their careers in business, become leaders of top organizations, and contribute to their communities.

2. A valuable skill for non-accounting roles

In addition to being an essential skill for those working in accounting, a degree in accounting can also assist in non-accounting roles within businesses. For example, knowledge of accounting principles and practices is helpful for many roles in marketing, human resources, operations, sales, and other business functions.

A strong understanding of accounting principles and practices can help individuals communicate more effectively with other business functions, spot financial risks, provide better direction to employees, and optimize their department’s performance.

3. A wide variety of career choices

Accounting is a versatile skill applied to many different industries and roles. Those with a degree in accounting can choose to work in financial services, tax consultancy, auditing, management consulting, and more. Additionally, having an accounting background can also provide opportunities for career advancement.

The US Bureau of Labor Statistics projects that there will be a 12% increase in accounting jobs available by 2028. This is much higher than the average growth rate across all industries, which is only 7%. This growth is primarily due to increased businesses and organizations requiring accountants and a higher demand for accounting services.

4. The ability to manage and analyze data

The rise of big data has placed a greater emphasis on the role of data analysts in businesses. Individuals with strong accounting skills are well-positioned to manage and analyze large amounts of financial data, so they are in high demand by employers. This is particularly true for finance roles that require accounting skills, such as auditing, financial analysis, and expense management.

Those with accounting skills are also in high demand for data analyst roles that don’t require a background in accounting, such as marketing and sales. This is because understanding data and accounting practices are essential for many organizations, regardless of the industry or role.

5. The ability to understand and communicate financial risks

You can’t deny the ups and downs of the economy, nor can you ignore its impact on your business. Businesses need to know how to manage their finances and mitigate risks. Understanding and communicating financial risks is crucial for any business, as it can mean the difference between a profitable and unprofitable business. Accounting skills provide a solid foundation for identifying financial risks and communicating them to others, especially with higher-level accounting roles like being a CFO.

Those with a background in accounting are well-equipped to identify and communicate financial risks, so they can help businesses make strategic decisions that minimize their impact. Understanding the financial implications of business risks is necessary for everyone, regardless of their industry or role.

This skill is valuable to non-profit organizations, government agencies, and other entities outside of a traditional business setting. For example, understanding financial risks can help these organizations plan for the future and develop financial stability, which is critical to the success of any organization.

6. Soft skills

In addition to being a versatile skill set applicable across industries and roles, accounting skills also come with various soft skills that are valuable for any workplace. These include problem-solving, attention to detail, time management, and teachability.

It’s common for most businesses today to have their own accounting department or hire an outside accounting firm. The ability to navigate the complexities of financial principles and processes can help individuals stand out from their peers as they transition into their professional careers.

7. The ability to manage a business’s finances

Managing the finances of a business or organization can be challenging, but it’s a critical responsibility for anyone in the accounting field. Individuals with both financial and accounting knowledge can oversee daily processes, interpret financial results, and make strategic decisions that drive profitability.

Those with knowledge of accounting can also help businesses manage the financial implications of their products or services. For example, they can help businesses determine the cost of their offerings and make strategic decisions that influence their success.

8. The ability to navigate regulations and compliance

The rise of regulations and compliance requirements over the last several years has placed a greater emphasis on accounting skills than ever before. Accounting skills allow individuals to navigate regulatory frameworks and ensure compliance requirements are met, whether from an outside agency or internally within a business.

Accounting skills can also be used to investigate regulatory violations, which is critical for businesses of all sizes. This ability is valuable in any industry, especially for government agencies, such as state and local governments, and those in heavily-regulated industries like financial services or healthcare.

Summary

The most common accounting skills that employers look for include financial analysis, budgeting and forecasting, auditing, cost management, and regulatory compliance. In addition to possessing these core skills, anyone working in the accounting field should also be well-versed in soft skills like problem-solving and teamwork. In addition, accounting skills are applicable across various industries and roles, enabling individuals to work in various professional settings.