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Tag: career in accounting

How to Start Your Career in Accounting Management After BCom

Posted on by Imarticus Learning

BCom graduates can have an extremely promising and lucrative career in accountancy and accounting management. The whole industry provides financial stability to such personnel along with abundant job availability, and excellent growth profiles that promise bright prospects in the arena of accounting and account management.

But how do you initiate this journey? In this blog, we’re going to look at how one can kick start a career in accounting management, some of the best jobs post BCom and the courses that can set you apart. If you are the BCom pass-out wondering as to what should be your next move then welcome to your definitive guide.

What does an Accounting Manager do?

Accounting management is a specialized discipline that goes beyond traditional accounting. It deals with managing financial systems, budgeting, internal audits, compliance, and data-driven insights to support organizational decision-making. The accounting manager plays a very critical role in defining the company’s health and strategic direction.

How is it different from Traditional Accounting?

While traditional accounting is more of a record, categorize, and report financial transaction, management accounting is interpreted to help in planning and decision-making. This change from record-keeping to strategy makes accounting management an in-demand career path.

High-Demand Accounting Jobs After BCom

A BCom degree provides exposure to a wide range of roles in accounting and finance. Some of the most lucrative careers for BCom graduates include the following:

  • Tax Consultant: Suggesting clients how they can save on tax and remain compliant with the same.
  • Auditor: Conducting reviews of financial records to maintain their accuracy and prevent frauds.
  • Financial Analyst: Studies market trends to give investment advice.
  • Management Accountant: Provides financial insight to assist in strategic planning.
  • Accounts Payable/Receivable Specialist: Ensuring timely payment and collection processes.

Why Management Accounting Stands Out

Among all the accounting jobs after BCom, management accounting is the most attractive. The role is not only a traditional accounting practice but also emphasizes strategic decision-making, making it a vital part of an organization’s leadership team. Management accountants also tend to earn more money and have better job security.

Courses to Enhance Your Career in Accounting Management

Management Accounting Courses to Consider

Adding more certifications and courses to advance into the challenging accounting sector highly benefits in terms of higher profile jobs. Here are the most impacting courses,

U.S. CMA (Certified Management Accountant)

CMA USA is a certificate that has global recognition because it can only be sought by candidates interested in venturing into accounting management, and such certification enjoys all the available advantages, without exception,

Duration: 6-8 months of intensive study.

Core Skills: Acquire mastery of 12 core finance and accounting skills.

Recognition: India’s first and only licensed prep provider for four global certifications in accounting and finance.

Chartered Accountancy (CA)

CA is one of the most traditional yet prestigious paths for BCom graduates. It includes hard training in auditing, taxation, and financial management.

Post-grad Programs in Accounting

For those interested in taking things further from this point of learning, there are post-grad degrees in accounting and finance; they are extremely rich knowledge streams giving understanding to every single principle associated with accounts and advanced practice of funds management.

Why Pursue US CMA Certification?

What Do US CMA Certification Offer That Is So Valuable?

 International Recognition: With over 1,40,000 CMA members globally, the certification has a good international standing.

Higher Salary: CMAs say they earn 58% more than their non-certified counterparts.

Less Time: The course is completed in 6-8 months, so it is time-effective for career advancement.

Practical Income Potential

“As the demand for CMAs rises, so does their salary. The median total compensation for CMAs in 2023 was reported to be around $132,000.”

Steps to Get Started in Accounting

A Step-by-Step Guide

A career in accounting management requires a structured approach. Here’s the step-by-step guide that will help you get started:

Step 1: Build a Strong Academic Foundation

Your career will start with excellence in your BCom programme. Good academic performances are not only rewarded through best job prospects but provide you with a solid footing for future education.

Stage 2: Practical Training

You can start here by applying to internship or entry level positions in accounting companies. These would provide ‘hands-on’ exposure to financial operations as well as practical understanding of actual business activities.

Step 3: Specialize in a Course

Follow a course that is going to make you competitive and earn a certification such as US CMA, CA, and other management accounts courses

Step 4: Networking

Utilize LinkedIn, webinars, industry events, etc. to act as a tool that connects you with the right people, networking that opens one’s door to mentorships, job referrals, collaboration, etc.

Step 5: Industry Trends

Accounting is not a stagnant field because the new regulations and new technologies keep on coming to it. So, stay updated in order to be alive in the career.

Key Skills

Technical as well as Soft Skills You Need Technical Skills:

You must have experience with accounting software packages like Tally, QuickBooks, or SAP

Excellent analytical and problem-solving skills

Knowledge of International financial standards and compliance mandates

Soft Skills:

A good communication skill that enables one to explain the finance concepts to non-technological users.

The skills of leadership and managing a team.

Flexibility in keeping pace with fast-changing technologies.

Future Prospects: Why Choose a Career in Accounting Management?

The Increasing Demand for Accounting Professionals

The demand for qualified accounting professionals is on the rise. Here are some reasons why this career remains evergreen:

Businesses of all kinds require accountants to keep track of their finances.

Globalization has increased the demand for professionals who are aware of international accounting standards.

Automation and technology are changing the industry, providing new opportunities for tech-savvy accountants.

Industry Statistics:

Projected Growth: Accounting jobs will grow by 6% by 2030.

Job Stability: The accounting industry has always been resilient, even in tough economic times.

FAQs: Frequently Asked Questions

1. What are the best jobs after BCom for freshers?

Some of the best jobs for BCom freshers include working as a tax consultant, financial analyst, and management accountant.

2. How long does it take to complete the US CMA course?

The US CMA course typically takes 6-8 months to complete.

3. Is management accounting better than traditional accounting?

While both fields have their merits, management accounting offers higher earning potential and a more strategic role in decision-making.

4. What are the most prominent BCom career paths?

Top career paths for BCom graduates include management accounting, auditing, financial analysis, and tax consultancy.

5. Can I take management accounting classes online?

Yes, many institutes conduct live online classes, thus becoming easy for working students as well.

Conclusion: The Way to Success

The accounting management career is full of promising prospects for growth, stability, and financial success. With a BCom degree and globally recognised courses like the US CMA, you are likely to achieve your goals.

The accounting industry is evolving, and those who are willing to adapt and upskill will thrive. This can be through earning certification, networking, or becoming aware of industry trends-the time is now.

Take the first step toward a fulfilling accounting management career-your future awaits

What is a Trial Balance? Why is Trial Balance Essential to Closing the Books?

Posted on by Imarticus Learning

As an accounting professional, having a solid knowledge of trial balance is imperative. Accounting errors are common in businesses and it is crucial to find them at the earliest before they cause any harm to the company. Professionals handling accounting with investment banking are well aware of such instances. 

Trial balance is one of the best ways in which this problem can be handled. This balance is vital for businesses that use accrual accounting. This means that the credit and the debit amounts must match one another. In case there is a mismatch, it indicates an error in the books. With a trial balance, you can find out and get to the roots of the error in double-entry accounting books. 

Understanding what is a trial balance?

A business might have different accounts. A trial balance can be defined as a statement where there is a record of the final ledger balance of the various accounts in a business. The two columns in a trial balance are debit and credit. In the final report, you can see if the debit and the credit equal one another at a given point in time. If the debits and credits do not match the trial balance, it indicates errors. 

The trial balance is prepared annually during year-end. It is used for preparing balance sheets or financial statements like profit and loss accounts. The main purpose that a trial balance serves is to ascertain the mathematical accuracy of the various business transactions which are recorded in the ledgers of the company. 

Common errors in a trial balance

A trial balance might have unequal debits and credits. This is due to some errors. Any graduate program for commerce lists these as some of the most common errors in a trial balance:

  • Transposition errors

Such errors happen when the order of two or more numbers reverses while recording a transaction. For instance, 16 gets recorded as 61 or 36 gets recorded as 63 and so on. 

  • Errors of omission

It is evident from the name that in this error, you forget to record an accounting entry into the books. 

  • Reversing entries

This is one of the most dangerous errors where there is a switch in the account to be credited and the account to be debited. 

In case the debits and the credits don’t match, don’t be anxious. The main objective of a trial balance is to find the loophole and fix it so that you have accurate accounting books at the end of the financial year. While closing your books, preparing a trial balance is mandatory. 

Preparing a trial balance

When you are looking to prepare a trial balance, you can choose from the below-mentioned three methods:

  • Balance method

In this method, every ledger account’s final credit/debit balance is used in the trial balance. Once you list the balance figures of all the accounts, the trial balance helps in checking the accuracy of all the transactions. This is for both the debit and the credit side. This is the most popular method for preparing a trial balance. 

  • Total method

This method records each and every ledger account’s final credit/debit columns to the trial balance. Both columns should have the same values and be equal as this method follows the double-entry bookkeeping method. 

  • Total plus balanced method

It is evident from the name of the method that it combines both balanced and total methods. There are four columns in the trial balance – two for the debit and credit totals of a ledger account and two for the account’s debit/credit balances. 

Different types of trial balance

You are mistaken if you think business owners prepare trial balances just once towards the end of the financial year. The fact is that they prepare it many times during the accounting cycle. While closing the books, you have to use three trial balances – one each for three different stages in the cycle. This helps in balancing credits and debits always. 

Let us look at the different types of trial balances:

  • Adjusted trial balance

In this, you can see the final balances in the general ledger accounts after you are done with adjusting entries. 

  • Unadjusted trial balance

This displays the balances in the general ledger account before you finish adjusting the entries. 

  • Post-closing trial balance

This is the account balance after you complete closing the temporary accounts. 

The importance of trial balance in closing the books

As an individual handling accounting with investment banking, you must be well aware of the importance of trial balance in closing the books. People have a misconception that a trial balance and a financial statement are the same. They are not. The trial balance is more of an internal report. 

Here are some reasons why a trial balance is important for closing the books:

  • Step for preparing a financial statement

Though a trial balance is not a financial statement, it is definitely the stepping stone for preparing a financial statement. The majority of accountants use this trial balance sheet as the base while preparing the final financial statement. 

  • Implementation of the double-entry concept of bookkeeping

In trial balances, the double-entry method of bookkeeping is implemented. There is a corresponding credit entry in the credit column against all recorded entries in the debit column. 

As there is the recording of all the entries from the different ledgers of the organisation, it is easy to identify and rectify errors if any. 

  • Detailed information on accounting transactions

With a trial balance, you can make out if the account balances are extracted accurately from the accounting ledgers. Moreover, it also provides an overall view of the company’s accounting transactions. Before scrutinising the ledgers, auditors can analyse the trial balance. 

Conclusion

Even though there are many solutions for detecting and rectifying accounting errors, the trial balance remains an integral part of all accounting processes. It is a crucial procedure when it comes to the closing of books of accounts in any organisation. A student pursuing commerce at the graduation level will surely learn about trial balance and its various uses and applications. 

If you are interested in pursuing a graduate program for commerce, you can enrol on Imarticus Learning’s B.Com from Rathinam College of Arts & Science. This is a 3-year full-time course including leading programmes with 2 specialisations – Professional Accounting with Investment Banking and Banking & Insurance with Financial Analysis. The course provides critical insights into financial analysis, corporate finance, valuation and modelling. 

Visit Imarticus Learning to know more about similar programmes. 

Financial Analysis: Unveiling the Power Behind Informed Decisions

Posted on by Imarticus Learning

In today’s competitive landscape, industries and companies face the need to take calculated risks and ensure that their decisions are financially sound, regardless of the outcomes they encounter. This is where the power of financial analysis becomes invaluable. Financial analysis serves as an essential tool for businesses, enabling them to evaluate their financial health, identify development opportunities and make strategic decisions with foresight.

best bcom course from rathinam college

By bridging the realms of accounting with investment banking, financial analysis plays a vital role in linking the intricacies of financial data to the success and long-term growth of companies. In this article, we will delve into the significance of financial analysis and explore how it empowers companies and investors to make optimized decisions that align with their goals.

What is Financial Analysis? 

By identifying the strategic link between the different financial components such as the income statement, balance sheet and cash flow statement, financial analysis firmly establishes an entity’s financial assets and liabilities.

Economic trends are evaluated, financial parameters are set, long-term company activity plans are developed and possible investment possibilities are identified through financial research. The career of a Financial Analyst is indeed a sound choice for aspirants holding a degree in any graduate program for commerce.

Objectives of Financial Analysis?

Studying and conducting the financial analysis is necessary for a business for the reasons listed below:

1. Evaluate the Earning Capacity: 

The purpose of financial analysis is to determine whether or not the company is making enough money. Profitability ratios are used to assess an organisation’s earning potential.

2. Evaluate Solvency:

The financial analysis makes an effort to ascertain the company’s short- and long-term solvency. The liquidity situation of the term is a matter of great interest to creditors. Ratio analysis is useful in figuring out whether a company is fully solvent.

3. Measure Management Effectiveness:

The financial analysis makes an effort to evaluate the management’s operational effectiveness. Such analysis is useful in analysing the suitability of the management’s chosen financial policies.

4. Budgeting and Forecasting 

Analysing past financial records is essential in making predictions. Based on the prior performance evaluation, it enables the organisation to forecast and create budgets.

Types of Financial Analysis

Financial statement analysis is carried out utilising a variety of methods, tools, and approaches. A few of them include:-

Comparative Financial Statement Analysis (Horizontal Analysis)

A comparison of the various financial accounts from year to year is provided through comparative analysis. It contrasts the company’s internal performance. The baseline is chosen to be one year. Then, for each consecutive year, each account is assessed about this baseline, producing a percentage that makes it simple to see which accounts are expanding and what accounts are contracting.

Common-size Financial Statement Analysis (Vertical Analysis)

Benchmarking, peer comparison, and internal performance assessments may all be made using vertical analysis. When doing a vertical analysis, each item in a given statement is expressed as a proportion of another item. In addition, vertical analysis is used to compare financial statements across firms, emphasising significant disparities that may be further examined, with those of competitors or the industry as a whole.

Financial Ratio Analysis

Because they offer both in value, percentage, or ratio between two or more figures, they are the most often used financial analysis approaches or instruments. By carefully examining each component of each ratio, the reader can spot circumstances or patterns by using financial ratios to help reveal them. Financial ratios are frequently expressed in this method of financial analysis as a mathematical connection that involves multiple quantities. 

Regression analysis 

A statistical technique used to identify and gauge the relationships between variables. The dependent variable often has a relationship with one or several different independent variables. In the context of financial statement analysis, the dependent variable could be, for example, sales, and it is necessary to evaluate its connection with the independent variable, for example, an element like Gross Domestic Product.

How Does Financial Analysis Aid Companies and Investors?

Financial analysis is essential in assisting businesses and investors in their decision-making processes and allowing them to more confidently and precisely navigate the complexity of the financial landscape. Let’s examine this in more detail-

Investing in Shares

For investors who wish to purchase or hold shares of a company, financial analysis is crucial. Investors may make wise investment selections by examining a company’s financial records and performance. Investors evaluate a company’s revenue, growth prospects, and financial stability through financial statement analysis. Investors may discover businesses that are expected to produce strong returns on investment using this methodology while avoiding hazardous businesses.

Giving credit

When granting credit to firms, financial statement analysis for business is important. Lenders can determine a firm’s creditworthiness and determine the risk associated with lending by performing a financial study of the company. Lenders can use this information to decide whether to extend credit, the amount to extend, and what conditions they want to impose.

Identifying areas for improvement 

Financial analysis will help companies in recognising patterns and trends that will help in locating which areas need improvement or have suboptimal performance. Making strategic decisions, allocating resources effectively, and enhancing operations are all made possible by these insights.

Assistance in accounting with investment banking 

Financial analysis becomes a crucial part of due diligence when businesses are looking for finance. The study aids investment bankers in assessing the transaction’s possible risks and financial sustainability. Investment bankers use financial analysis to evaluate the company’s cash flows, ratios, and financial statements to make sure the transaction fits the investor’s goals and risk tolerance.

Conclusion

The convergence of financial analysis, and accounting with investment banking is crucial for enabling businesses and investors to successfully negotiate the volatile financial landscape. To determine a company’s value, analysts use a variety of essential financial factors, including revenue growth, profitability, cash flow, and return on investment.

Analysts can use these metrics to assess a company’s financial performance and assess its prospects for long-term profitability. The use of financial statement analysis tools also helps companies to assess their financial performance against that of their rivals and industry standards. This study provides revealing details on the company’s position in the market and competitive advantage.

If you want to learn more and get yourself in this field, enrol yourself in the graduate program for commerce by Imarticus and get a lead in your career.