In the corporate world, sometimes things aren't exactly black and white when it comes to accounting procedures. -George W. Bush
Business enterprises include a host of activities accompanied by simultaneous transactions. Simple accounting consists of keeping a track of transactions taking place on a daily basis, recording them and subsequently performing analysis. Cash flow statements, profit and loss statement, trial balance and balance sheet form the backbone of a financial system. Accounting helps in the short-term durations, but financial accounting focuses primarily on the enterprise's assets and liabilities in the long-term durations.
Financial accounting reporting acts as an enabler to accurately speculate the prospects of a business idea in the future for informed and strategic decision making. Accounting acts as a building block of financial accounting. With the expansion of businesses and the rise of entrepreneurs in India, there is a growing demand for professionals expertise in the field of financial accountancy in India.
Also, the world is witnessing a gradual adoption and consistent up-gradation of the International Financial Reporting Standards (IFRS). It is in the best interest of the nation to nurture highly educated, well-trained and qualified financial professionals who can facilitate financial reporting for both domestic and international markets.
Learning From Accounting Classes India
Monetary transactions involve multiple stakeholders apart from the lender and the borrower. It holds multiple influences upon others who are related indirectly in the supply and also impacts the nation’s economy as a whole. There are many aspirants who want to effectively contribute to the science of monetary transactions. The attempt starts from the school days to learn from accounting classes India.
India follows a very disciplined pedagogy for imparting knowledge in different subjects. Post clearing of the high school board examinations, students are free to opt for the subjects of their own interest. They may choose science with mathematics to pursue engineering, science with biology to pursue MBBS and commerce to pursue the accounting profession. Likewise, there are similar streams for arts aspirants in many other subjects. The education in these streams is offered both by the national and state boards respectively. The curriculum for the remaining two years of school education is designed in such a way, that by the completion of school education the student has a concrete conceptual understanding of different fields related to his chosen subject stream. Books and tutorials are the primary modes of imparting knowledge.
Subjects Offered In Schools To The Accounting Aspirants
Students pursuing accounting in their school education are taught and trained in the very basics of accounting and related subjects. They are meticulously taught accounting to teach them identifying, recording and performing analysis on the transactions. For a better understanding of supply and demand, taxations, market scenarios, behavioural co-existences that influence transactions, economics, commerce, marketing and taxations are also taught. Mathematics is also explained so that aspirants can develop analytical aptitude towards the subject and effectively communicate their findings.
Teaching Financial Accounting
It requires highly qualified and experienced faculty members and professionals to impart education in financial accounting. Being a very sensitive and important component of any business entity, extreme accuracy and precision are required in the financial reporting. Books are written in a structured way to teach the following key concepts in financial accounting-
- GAAP: Generally Accepted Accounting Principals, under which accrual accounting is practised such that revenue is recognized upon entering a transaction rather than solely upon exchange of cash (cash accounting).
- Accounting Cycle: The hierarchical process of identifying and grouping transactions under assets and liabilities in a ledger to perform financial analysis.
- The Income Statement: Study of profit and loss by examining the total expenses and revenue during a definite time period. (Net Income= Revenues- Expense)
- Balance sheet statement: This is a comprehensive financial statement that highlights the total assets possessed by a firm against the total liability and equity held in the name of the firm during a stipulated time period. (Assets = Liabilities+Equity)
- Cash flow statement: It is the recording and study of cash flows actually taking place during the given time period. It describes the health of a business enterprise. The depreciation and amortization of assets do not contribute to its study.
Important Books to Study Financial Accounting
Books authored in detail and explained properly are an indispensable medium to impart knowledge and arouse the curiosity to learn amongst the aspirants.
Find different professional courses in finance and accounting here.
Some commonly preferred books by financial accounting students are-
- ISC XI nad ISC XII, T S Grewal’s Double Entry Book Keeping, Sultan Chand Publishers
- Financial Accounting Essentials You Always Wanted To Know: 3 (Self Learning Management) Paperback – Import, Vibrant Publishers
- Financial Accounting Paperback –by P.C. Tulsian, Pearson Publishers
- Financial Accounting for B.Com. (Hons.) Paperback – by P C Tulsian, S Chand Publishers
- Cost Accounting: Texts and Problems Paperback – by Shukla M.C., Grewal T.S., Gupta M.P, S Chand Publishers
- Financial Accounting: A Managerial Perspective Paperback – by R. Narayanaswamy
- Cost Accounting: Text, Problems and Cases by Jawahar Lal, Seema Srivastav, et al., McGraw Hill Publishers
- International Financial Management | 8th Edition by PG Apte and Sanjeevan Kapshe, McGraw Hill Publishers
- Financial Management by I M Pandey
These books are a blend of theory explained with numerical examples and different case studies. They focus on teaching the concepts from the application point of view in day to day life. Readers can easily develop an understanding of the subject as each and every topic concerning financial management has been divided into different chapters, making the learning of financial statements coherent and concise.
Financial Accounting Courses
The foundation for strong, conceptual understanding is laid in the preliminary teachings in school. There are different courses and certification programs offered in India, to facilitate the fulfilment of aspirants to become a financial accounting professional. Degree courses offered in graduation and post-graduation are-
- Bachelor of Commerce (B.Com) - financial analysis, taxation and finance, finance and accounts, international finance, market research and capital budgeting, etc,
- Master of Commerce (M.Com) - financial analysis, taxation and finance, international finance, etc.
- Master of Business Administration (MBA) - financial management, analysis, etc.
Apart from these, there are many popular courses in demand to become a certified and chartered financial expert-
- Financial Modelling
- Certified Public Accountant (CPA)
- International Financial Reporting Standard (IFRS)
- Association of Chartered Certified Accountant (ACCA)
- Certified Program in Financial Accounting (CPFA)
- Chartered Accountant (CA)
- Cost Accounting
Graduation courses are offered for a period of 3 years and post-graduation courses for a period of 2 years respectively.
Apart from traditional teaching from books, several module-based and online courses are also being developed. Various modules are developed by professionals such as auditors, accountants and financial analysts to teach the budding talents about the new concepts, applications, challenges and probable solutions to tackle them along with the books.
Accounting Online Is Gaining Prominence
Because of the rapidly growing business enterprises and increasing complexities in business activities, there is a need for expeditious accounting activities. Hence, the workforce is now shifting towards the digitization of the accounting processes. There have been significant software developments in this direction. Tally ERP, QuickBooks, Zoho, etc. are being integrated into the company’s finance and accounting systems.
Accounting online improves the accuracy and precision in the recording of business receipts, holding accountability, projecting cash flow trajectories, etc. Moreover, the government is also simplifying the accounting procedures. The Indian government has already launched the GST portal wherein, GST can only be filed online. Income tax, excise, customs, anti-dumping, loan approvals are all getting digitized via online connectivity. Net banking, for example, saved the people stepping out from their homes during the lockdown. A lot of auctions and their payments are done online.
Globalization and liberalization have encouraged companies to step outside from their birthplace and establish offices to spread their business across the globe. In this attempt, businesses are getting globalized and are bound to comply with the laws of different lands, transact in different currencies and take care of complex taxation procedures. A lot of these processes get simplified if things are managed online via digitized collaboration. Data synchronization and subsequent analysis also become easy. The information can be accessed at any time from any part of the world. It saves both time and money for the stakeholders.
How Online Classes Are Essential?
Books are the student’s best friend. They guide students through the very basics, concepts and importance of a given subject. Books reflect the practical applications of the knowledge mentioned by the author. Although it is the teacher who helps students to assimilate the knowledge perfectly. Various online facilities are available today to strengthen the financial concepts and different certification courses are also provided by various professional bodies-
- Institute of Chartered Accountants of India (ICAI)
- Institute of Company Secretaries of India (ICSI)
- National Programme on Technology Enhanced Learning (NPTEL)
Concepts delivered by these online accounting classes are developed keeping in mind the pedagogy adopted in books. It is only that the teaching becomes more engaging and different animations and multimedia are used to communicate the theories effectively.
Accounting is a highly technical and logical subject. It, therefore, necessitates the application of best books for teaching and learning along with the skilled teachers.
Students also want to capitalize upon their time to enhance their learning and implementation skills. Superprof, facilitate the students to find a perfect tutor or trainer who can simplify their learning process and make it more interesting. It offers an interactive dashboard, students need to enter the subject of their choice and the area in which they are looking for a tutor. Superprof displays the list of teachers along with their detailed profile about their expertise, experience and subject interests. Students are offered a free demo lecture to select their best faculty. This saves them from the hassles of searching tutors door to door.