According to the U.S. Bureau of Labor Statistics, employment of accountants and auditors is projected to grow 5 percent 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!
Understand the Basics of Accounting
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:
- Basic terms
- Principles
- Concepts
- Rules
- Equation
- Tools
To further break things down, let’s say accounting has three main purposes:
- Recording financial data
- Summarizing financial data
- Communicating financial information
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.
Familiarize Yourself With Key Accounting Concepts
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:
- Profit vs. cash flow
- Accrual vs. cash accounting
- Dual aspect concept
- Business entity concept
Understand How Financial Statements Work
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
Learn Bookkeeping
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:
- Data entry and software
- Bank reconciliation
- Managing accounts payable and receivable
- Managing financial statements
- Payroll management
You can take professional bookkeeping courses, such as those by Intuit Academy. They will teach you everything from core concepts to business-specific regulations.
Develop Essential Skills
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:
- Communication
- Critical thinking and analysis
- Attention to detail
- Problem solving
- Time management
- Organization
- Adaptability
- Business administration
- Integrity and confidentiality
Other technical and future-focused skills include:
- Financial reporting
- Data analysis
- Taxation
- Software proficiency
- Technology fluency
Accounting is an ever-growing field. You can learn accounting to handle personal finances or to offer professional services to businesses.
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