Even a small start-up business can often be quite a complex entity. This is because ensuring operational and profitable success means keeping track of all possible transactions. Regardless of the industry, from gemstones to billable hours or even a kiddies’ toy store, keeping tally of resources, stock and payments is critical. This is where accounting comes in. This is a meticulous record of every purchase, every expense, every sale and every cent of the payroll.
What is the difference between Accounting and Auditing?
Similar to the medical and legal world, the field of accounting includes a few different areas of specialisation. While accounting is the much broader field, and it includes everything to do with tracking, organising and managing the cash flow through a business, auditing is far more specialized. Auditing professionals support the larger field of accounting. This is because the process of auditing a business means verifying the accuracy and integrity of your existing accounting system.
Why are Accounting and Auditing important?
There are a number of reasons why these two pillars of the business world are critical to successful operations:
- For one, it’s really difficult to know if the entity you’re managing is actually profitable if you don’t know how much money is coming and going.
- Secondly, if your books are in good order in accordance with legal and generally accepted accounting principles, it also makes securing investments and entering into partnerships or even merges far easier.
- Thirdly, you will have a lot less stress caused by inaccuracies when it comes to tax season, especially when validating expenses and depreciations for your business
Why should students consider studying Accounting?
Most would agree that internal controls are vital for protecting both financial and physical assets in the world of business. Accounting and Auditing are one of the most important methods of testing the effectiveness of these internal controls. This is certainly not going to change any time soon and offers those who study an accounting programme a wide range of advantages and great job security. Not to mention that this field can be incredibly exciting and rewarding too. For example, auditing professionals are often tasked with uncovering instances of fraud, errors and actions – particularly those that could damage a company’s reputation and future success.
If you’d like to know more about studying Accounting and Auditing, speak to one of our student advisors about the available options to suit your specific career path.