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8 Reasons why do you need Accounting Standards

With the financial industry becoming highly internationalised and sophisticated, investments across countries are becoming highly prevalent. To keep up the coherence of the industry, it has become an absolute necessity for the financial reports to be impeccably consistent and compliant with the accounting standards so that investors and analysts can depend on them. The primary advantage of accounting standards is providing precise information through different financial statements in such a way so that it remains comprehensive for all the stakeholders across the industry.   Attribution: The icons has been designed using resources from Flaticon.com ...Read More

August 28, 2021|Accounting, Accounting Discussions|

Is Accounting competitive? 4 Truths About Accounting Career

So, you are interested in accounting. You want to embrace this career. However, you are uncertain about the growth possibilities. Accounting can be exciting and fun. If you believe that you can meet the job demands, you can give it a try. You will need some specific skills for this job. It can be the best career if you have an interest in mathematics and business. Also, you will have the option to explore different industries. You can start with an entry-level job that ranges from data entry to financial analysis. With experience, you can ...Read More

August 22, 2021|Accounting, Accounting Discussions|

Is Accounting Fun or Boring? 8 Reasons Why Accounting Is Fun

If you ever wanted to pursue a career in accounting and wonder if it is worth the try, you’re on the right page. In this article, we will take a closer look into accounting and discuss some top reasons why you should consider pursuing this profession. Accounting is fun for anyone who is into logical thinking and has an affinity for mathematics and business.  Ideally, jobs in this profile are best suited for organised candidates who are driven to help businesses run efficiently. If you are choosing accounting as a profession, you need to understand ...Read More

July 30, 2021|Accounting, Accounting Discussions|

Types of Assets in Accounting Explained

A corporation or any business owns assets, and they are the source that produce revenue. In accounting, assets are either physical or non-physical. For example, a building is a physical or tangible asset, while stocks or shares in the market are non-physical or intangible assets. The opposite of an asset is called liability, and they share qualities such as physical and non-physical. The types of assets can fall under any of these categories: tangible and intangible, current and noncurrent, and operational and non-operational.   Attribution: The icons has been designed using resources from Flaticon.com ...Read More

July 23, 2021|Accounting, Basics of Accounting|

Different Types of Balance Sheets Explained

A balance sheet presents the sources of money (Liabilities and Owners’ Equity) and the uses (Assets) of a business.  In general, for public financial disclosers under standard accounting principles (like GAAP, IFRS) there is only one type of balance sheet. But companies whether they are private or public on the other hand, can establish various internal balance sheet based on their preferences. Management accountants generate internal financial records regularly, and are not regulated because the users are their management. There are many different types of balance sheets companies can pick from. The two key types ...Read More

July 17, 2021|Accounting, Basics of Accounting|

Pros and Cons of Common Size Analysis

One of the techniques in overall financial statement analysis is preparing a common size analysis of a business where you can compare its financial position and performance year by year (time-series) or through comparing it with other companies (cross-sectional). But the question is, how actually good is common size analysis and what are its limitations? The key benefit of common size analysis is it is easy to understand providing initial perception about the financials. While the main limitation is that there is no standard ratios to follow and the company size is not considered in ...Read More

June 21, 2021|Accounting, Accounting Terms|

6 Reasons Why Accountants Should Learn to Code

Should accountants learn to code? Yes. This is because both coding, which involves the use of programming language, and accountant feature arithmetic and analytical properties. Accounting mainly features patterns that relate to capturing, storing, managing, and analysing data. Accountants also work with systems such as payroll, cash flow, assets, and accounts receivables/payable among others. all these are related to programming because for these systems to run, they must be programmed first. Attribution: The icons has been designed using resources from Flaticon.com So, a combination of accounting and programming skills can help to significantly ...Read More

June 2, 2021|Accounting, Accounting Discussions|

Finance vs Accounting – Which Should You Study?

If your career interest lies in dealing with numbers, you're probably on the lookout for a degree in a relevant field. While some guides may recommend you take up finances, others may suggest an accounting course. So, which one is best for you? Accounting, in an organisation, deals with the information behind financial transactions. Finance, on the other head, is the management of these transactions. While accounting majorly involves record-keeping, finance is about planning. Attribution: The icons has been designed using resources from Flaticon.com   Major Differences Between Accounting and Finance Careers Now ...Read More

May 26, 2021|Accounting, Accounting Discussions, Finance|

5 Limitations of Profitability Ratios

Profitability ratios analysis is a good way for measuring the performance of a company. It is the reason how businesses know if their capital allocation is right. Of course every positive has its negatives. Let us focus on its limitations in this post. The main limitation of profitability ratios is that they are focused on the business performance generally in terms of income and expenses for a specific period of time. It disregards the financial strength of the business and the overall long-term outlook.   This means using other ratios along profitability ratios is important ...Read More

May 22, 2021|Accounting, Accounting Discussions|

5 Key Limitations of the Balance Sheet

The first  financial statement for any business is the balance sheet. When money comes in, owners/banks inject the money and the assets in the business increase. Such statement makes the balance sheet is an indispensable source for business decisions when it comes to allocating resources and funding. A balance sheet offers insight into a company's financial status as well as a piece of critical information regarding an entity's ability to continue to survive and operate its business operations for the foreseeable future. But the question in this post is what are the limitation of the ...Read More

May 2, 2021|Accounting, Basics of Accounting|