What Basic Accounting Skills Can Do For Your Career

No matter what field you work in, it is probably a good idea to sharpen and acquire skills that are not necessarily core to your position. For example, sales skills can improve a lawyer’s argument in a court room, and writing skills can help a financial advisor better communicate to their clients.

In the same vein, basic accounting skills can do some amazing things for any career. Although some people may shy away from lessons in accounting, citing poor math skills or general confusion with the subject, they may be surprised by how quickly they catch on. And the benefits are well worth the effort.

Some accounting and bookkeeping skills you may find useful are how to read income statements, balance sheets, and cash flow statements, how to create those documents, and how to analyze them and glean knowledge from them. Working with Microsoft Excel and being able to define and comprehend accounting terms (revenues, liabilities, assets, etc.) can also be beneficial.

Here are just a few things that basic accounting skills can do for your career.

Increase Your General Business IQ

Whether you are managing a business or not, understanding where your company is going is important. And since the basic function of a business is to make money, it would be beneficial to understand exactly how your company is doing that.

If you’re aware of the debits and credits on your department’s balance sheet, that may help you to understand the position and direction of the business at large. And if you’re in a decision-making role, this information can greatly affect any path you may take.

Put You In-Sync with Your CFO

You may be working by your CFO’s side each day, or you may see them in a few meetings per year. Either way, understanding the messages they send to the company and their vision for the future is critical.

If you can show that you not only understand your CFO’s vision, but also have things to contribute to that vision, it just may have a positive effect on your career trajectory. Helping the team in such a visible way could be the advantage you’ve been searching for. And basic accounting skills can help you on your way.

And if you’re on par with the CFO, these skills will make it a bit easier to get on the same page and collaborate with them. The decisions you make together can be the difference between success and closing your doors, so understanding the basic functions of their department is crucial.

Hone Your Basic Skills

When you learn basic accounting skills, those are not the only tools you are sharpening. You aren’t just learning the difference between net profit and gross profit, but you’re also developing skills that you may not be aware of.

For example, your critical thinking is being put to the test when you’re wrapping your mind around an invoice. If you’re figuring out how to balance a balance sheet, you are practicing problem solving skills and exercising logic. These skills can be applied to a plethora of other scenarios.

Other skills you develop along with basic accounting are work ethic, organizational skills, communication, math skills, and computer savvy.

Bring Wider Understanding to your Own Job

No matter what you’re doing, it can be better informed by an understanding of basic accounting skills.

If you’re in human resources, for example, you may know how much it costs to hire a person. With recruiting costs and time spent, you can calculate the loss to the business before you even pay the new employee a dime. If you understand what that could mean to the company’s bottom line, it may change a few things about how you operate going forward.

This concept can be applied to a number of teams, from marketing to sales and beyond.

Aid In Your Personal Life

In addition to the things that basic accounting skills can do for your career, it can also improve your personal life.

Whether you want to better understand your personal finances or how current events affect the economy, a basic understanding of accounting can help you navigate these complicated matters. From buying a car to overseeing your retirement fund, you can get a better handle on your bank account with basic accounting skills.

If you’re looking for a new place to take your skills – accounting and otherwise – take a look at our job listings. If you choose to apply, one of our expert consultants will be in touch with relevant opportunities. Or, if you’re seeking qualified candidates, reach out to one of our recruitment consultants today.