StarDust said:
Hi Tobakki,
I think it is great you are learning accounting. It is essential to understand the manual accounting process ... The automated accounting system is only as good as the data entered. Understanding the workings behind the software (based on structure of manual accounting) will help you read reports better along with ability to detect data errors where to find them and fix the issue. When looking at company reports such income statement, balance sheet cash flow... it tells the story of the company. How financial stable it is? What are the risks? Good reports are used for the planning and direction of the company for the future. It is so essential to have high quality reports with strong data integrity. Bad accounting practice can lead to garbage reports which can fail to identify weakness in the company that needs corrective action for the livelihood of the business. I love how accounting systems can document an entire company to last penny... but the thrill is making the most use of all that data, putting it together for meaningful reports used for key decision making purposes.
Thanks for the reply StarDust ,
After going through a lot of their explanations about the basics of accounting . I started to prepare notes of my own .I had to refine a lot of things myself in order to better understand the explanations .
These are the stuffs i have wrote myself in order to properly understand it .
Accounting is the art of recording items , amount and parties
When an accounting event happens in a company
Create the records of the items , amount and parties .
Why do we do that ?
We do that in order to understand the movement of items , amount and parties in an accounting event
There are many categories of items that move in and out of a business
Items of Asset
Items of Expense
Items of Income
Items of Capital
Items of Liability
Create the records of of the Items of those category according to the rules of accounting
Because it would be nice to know from a Company point of view ,What items , amount and parties are being debited and credited according to the rules of accounting .
The term debtor and creditor are different from the terms Debit and Credit .
I am happy that i have learned at least this much .
Myra said:
I mostly liked my accounting classes. When I worked on manual exercices I would get really absorbed in them and loved that. But in real life computer softwares do it, so as a job it wouldn't be enjoyable (but I can't think of any job that is). So doing accounting with pen and paper was my love, it was meditative and I would completely forget the world around me haha! I didn't much enjoy entering numbers in the software because that was boring, yes. And also some theoretical stuff was boring. But it's like studying anything. In my life I have never had to study something that wasn't boring in some way... You just have to sit down and do it without hesitating. Just do it. And don't get into the mindset that accounting is more boring than other courses. Other people who take different courses are just as bored by the stuff they need to remember. And that's a good motivation right there when you say that it's a well paying job, isn't it? I wish you good luck with your course.
Thanks Myra ,
Yes i was very confused about the practical side of the job in the beginning , i knew that i was not going to work with entries in a Textbook , but a lot of real Invoices or records of Invoices in an Excel sheet .
I have seen people sending Excel sheets of Invoices to Accountants through Whatsapp or Email to accountants at night at my last work place .
And the Accountants starts working on those Excel sheet from from the morning to evening .
I am very happy that i have been able to narrow it down this much .
When i first started learning accounting it was very difficult to see the practical side of it .
