How to Learn Business Accounting

Business accounting is important because it allows the tracking of income and expenses, which gives an overall picture of the business's financial health. Business accountants manage and produce balance sheets, pay taxes for the company and oversee all necessary financial reporting. Most companies either keep their business accounting functions internal or outsource them to accounting firms. It can be a challenging and rewarding field for anyone interested in finance. Learn business accounting by training on the job, or taking courses and classes to learn about the responsibilities and requirements of the job.

Method 1 of 2: Teaching Yourself Business Accounting

1. Sharpen your math skills. Business accounting starts with basic math.

• Make sure you are able to count, add, sort and multiply in your head or on paper without the luxury of technology and calculators.

2. Check out what business accountants are using for hardware and software.

• Practice adding and subtracting on the newest calculators and take a tutorial on Excel, Quicken and other spreadsheet programs and accounting software available.

3. Familiarize yourself with the principles of business accounting.

• Learn the terminology and the tools. Most business accountants work with financial statements, balance sheets, corporate tax filings, payroll records, profit and loss statements, receipts, invoices and ledgers.

• Research the difference between business accounting methods, and when and why they are used. Familiarize yourself with cash accounting and accrual accounting, for example.

4. Look for websites and books that can help.

5. Take advanced accounting classes. You do not have to major in accounting in a college or university setting to understand business accounting, but a few classes will give you a lot of knowledge.

• Look for business accounting courses offered by community and junior colleges in your area. They often let you take classes even if you are not working towards a degree.

• Take online classes in business accounting and finance if you need a more flexible schedule. There are several programs to choose from, including traditional colleges like the University of California at Berkeley and online schools such as Liberty University and American Public University.

6. Read up on the latest business and financial news as much as you can. Check the financial section of newspapers, and follow blogs and other online sites that discuss finance, business and accounting.

• Subscribe to newsletters and other publications that will keep you informed on developments in the business accounting field. Staying current will help you learn.

Method 2 of 2: Learning Business Accounting From Hands-On Experience

1. Get a job in the accounting field. This will give you on the job training in business accounting.

• Look for an entry level position in the accounting or finance department of a small company or an accounting firm. This will get your foot in the door, and you will be taught the basics of business accounting.

• Search for an internship or part time opportunity if full time work is hard to find. Many accounting firms are especially willing to hire extra help during tax season.

2. Look for a mentor. Find someone in the business accounting field who does good work and is well-respected by other professionals. Try to work with that person as much as possible.

3. Practice. Once you learn the basics of business accounting, including how to produce balance sheets and financial statements, keep practicing.

• Offer to help friends and family members with their personal or business accounting. Perhaps you know someone with a small business who does his or her own accounting, or you have a friend who struggles to balance his or her checkbook every month. Offer to take charge. This will give you additional experience and practice.

4. Test yourself. Create financial statements, tax records and balance sheets for fictional companies.

• Take note of where you are unsure of process and procedures, and spend some time studying that area of business accounting a little bit more.

Post by : Rony Sutiyanto

Source :www.wikihow.com