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    Why Learn Accounting? 6 Benefits

    Person working on a calculator
    • 02 Oct 2015
    HBS Online Author Staff
    tag
    • Accounting
    • Business Essentials
    • CORe
    • Finance
    • Financial Accounting

    Financial accounting has been called the universal language of business, so it makes sense that all business professionals should be fluent.

    While you might think non-accountants don't need to study financial accounting, an understanding of key accounting concepts, like the accounting equation and financial statements, can be helpful for all professionals.

    Here are six reasons why any professional can benefit from understanding financial accounting.


    Free E-Book: A Manager's Guide to Finance & Accounting

    Access your free e-book today.

    DOWNLOAD NOW

    What Is Accounting and Why Is It Important?

    Accounting refers to the process of reporting and communicating financial information about an individual or organization.

    In simpler terms, accounting is how a business records its financial information. Accountants, or anyone else tasked with accounting activities, are concerned with capturing a snapshot of an organization’s financial health at a specific point in time.

    Some common accounting activities include:

    • Recording transactions
    • Collecting financial information
    • Compiling financial records, reports, and statements
    • Preparing tax returns
    • Ensuring an organization’s taxes are paid and its financial records comply with the law

    There’s a common misconception that only finance and accounting professionals need to be familiar with accounting concepts, but financial accounting is a critical business skill for all professionals.

    Whether you’re an entrepreneur who needs to prepare financial records for your company, a business professional trying to better understand and contribute to your organization’s financial decision-making process, or someone who wants to make sense of your own finances, studying basic accounting can provide many benefits.

    6 Benefits of Studying Accounting

    1. You’ll Be Able to Manage Your Own Finances More Effectively

    Be honest: Can you explain where all your money goes after your paycheck gets deposited? With some accounting knowledge under your belt, you’ll gain a deeper understanding of what goes on with your personal finances and learn important skills, such as how to effectively track expenses and work within a budget.

    To learn more about how finance and accounting impact your daily life, watch the video below featuring Harvard Business School Professor V.G. Narayanan, who teaches the online course Financial Accounting:

    View Video

    2. You’ll Gain An Understanding of Current Events

    There’s no shortage of scandal in the accounting world. You may have heard stories of illicit manipulation of financial documents for personal gain, or seemingly small accounting mistakes with disastrous consequences.

    With a basic understanding of accounting, you can understand what these companies have done wrong and why it matters. You’ll also learn how current events related to finance and accounting might impact your organization and industry.

    3. You’ll Be Able to Make More Meaningful Contributions at Work

    Picture this: You’re in a staff meeting and the chief financial officer (CFO) wants to discuss the past quarter’s financials. If you’ve had an introduction to accounting, you’ll not only be able to understand what the CFO is talking about, but also chime in with your own financial insight and opinions.

    With accounting knowledge under your belt, you’ll also be able to determine the financial health of your organization on your own. With this information, you can glean meaningful insights and bring suggestions for improvement to upper management. Ultimately, understanding your company’s finances will help you be more effective in your role.

    4. You’ll Be Primed for Entrepreneurial Success

    If you own a business or are considering entrepreneurship, you need to understand basic accounting principles to be successful.

    Managing costs, cash flow, invoices, vendors, and payroll are all critical components of running a company. Some important accounting skills for entrepreneurs include preparing financial statements, determining how profitable your business is, forecasting future sales, and communicating financial information to stakeholders and investors.

    As a business owner, studying accounting can put you one step closer to reaching your entrepreneurial goals.

    5. You’ll Have Career Advancement Opportunities

    Even if you're not an accountant by trade, accounting skills can help you advance your career. You’ll become more effective in your current role and a more attractive candidate for advanced roles.

    Learning financial accounting also presents a pathway for you to transition into a finance or accounting role. According to the Bureau of Labor Statistics, employment in financial occupations is expected to grow five percent by 2029, which is faster than the average rate for all occupations. By studying accounting, you’ll develop the skills needed to qualify for such roles.

    6. You’ll Improve Your Decision-Making Capabilities

    Organizations utilize financial statements like balance sheets and income statements to make data-driven decisions regarding investment opportunities, budgets, and resource allocation.

    By learning accounting, you’ll be able to analyze financial statements to help inform business decisions and facilitate communication between your organization and its stakeholders. Not only will accounting skills make you a better decision-maker at work, but you’ll also learn to make more evidence-based decisions in your personal life.

    A Manager's Guide to Finance and Accounting | Access Your Free E-Book | Download Now

    Learning Financial Accounting

    No matter your current role, learning about financial accounting can be highly beneficial. You’ll be able to understand your personal and organizational finances, make more data-driven decisions, and advance your career.

    Do you want to develop or hone your financial accounting skills? Explore our eight-week online Financial Accounting course and other finance and accounting courses to discover how managers, analysts, and entrepreneurs leverage accounting to drive strategic decision-making.

    This post was updated on September 17, 2021. It was originally published on October 2, 2015.

     
    All FAQs

    Top FAQs

    How are HBS Online courses delivered?

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    We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

    Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

    Are HBS Online programs available in languages other than English?

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    We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

    All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Coursework must be completed in English.

    Do I need to come to campus to participate in HBS Online programs?

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    No, all of our programs are 100 percent online, and available to participants regardless of their location.

    How do I enroll in a course?

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    Certificate Programs

    HBS Online welcomes committed learners wherever they are—in the world and their careers—irrespective of their professional experience or academic background. To extend the reach of HBS Online, we no longer require an application for our certificate programs. (Applications are still required for our credential programs: CORe and CLIMB.) You can now immediately enroll and start taking the next step in your career.

    All programs require the completion of a brief online enrollment form before payment. If you are new to HBS Online, you will be required to set up an account before enrolling in the program of your choice.

    Our easy online enrollment form is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your enrollment status will be shown on your account page. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for enrollment for any HBS Online program.

    Credential Programs

    HBS Online's CORe and CLIMB programs require the completion of a brief application. The applications vary slightly, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

    Our easy online application is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your application and enrollment status will be shown on your account page. We confirm enrollment eligibility within one week of your application for CORe and three weeks for CLIMB. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for admissions for any HBS Online program.

    Does Harvard Business School Online offer an online MBA?

    +–

    No, Harvard Business School Online offers business certificate programs.

    What are my payment options?

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    HBS Online offers a variety of payment methods to provide flexibility, including:

    • Credit and debit cards (Visa, MasterCard, Discover, and AMEX)
    • PayPal
    • Wire transfers
    • Western Union
    • Bank loans (When available)

    You may split your payment across two credit card transactions or send a payment link to another individual to complete payment on your behalf. A minimum payment of $350 is required for the first transaction.

    Some learners may also qualify for scholarships or financial aid, which will be credited against the program fee once eligibility is determined. Please refer to the Payment & Financial Aid page for more information.

    What are the policies for refunds and deferrals?

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    After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

     

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