How to Study Accountancy

In every company, you see accountant. It means that requirement of accountant is started when any body opens of his new business because all want to effective use of fund. With accountancy, we can effective use our fund. When we make financial statement with accountancy knowledge, we can track our financial shortcomings and in future, we take good business decisions according to our financial limitations. So, to study accountancy is must for everybody. Moreover, to records transactions through accounting skills make us to reduce useless expenses. Budgeting is also one of tool of accounting which teaches us to proper forecast of our incomes and expenditures. So, that is reason, today, we will learn steps to study accountancy successfully.

1st Step : Take Care of Every Step of Study of Accountancy

Accountancy is step by step learning process. You can not avoid any of its step. If you start to learn advance topics or problems without understanding theory concepts, it may be tough for you. So take care of its each step.

2nd Step : Try to Differentiate Cash Book and Revenue Book

Sometime, when you get money or paid money, you understand it just like income and expenditure of business. Many accounting confusions may start from this point. Remember, Cash book is just record of cash and bank receipts and payments. It is not related to revenue book. Revenue book is profit and loss account which records the earning and expenditures of business whether it received in cash/ bank form or not. Many outstanding earning and expenditures are recorded in revenue books under accrual basis.

3rd Step : Analysis of Accounting Information is Important to Study

To pass the voucher entries and show financial statements is the work of accounts assistant. But, you have not to fix your target at this point. You have to go above. For this, you have to learn to analyze of accounting information. This is very important part of study of accountancy. Because, if you get this skill, you can obtain the chance to capture the nervous system of accounting. There are many analysis like ratio analysis, cash flow analysis, fund flow analysis and cost benefit analysis are main things to study.

4th Step : Try to Solve Sample problems

After fixing high vision, start practice, practice and practice to solve sample accounting problems is the best way to study accounting.

Related : Best Ways to Teach Accounting