6 mins
The art of accounting involves tracking, measuring and monitoring all the resources and transactions of a business or an enterprise. Simply put, recording, processing and analysing the movement of wealth in and out of a business, whether in the form of profits, losses, expenses, liabilities or loans, is at the heart of accounting activity. Skilled accountants are the vital organs of any and every successful business organisation. Accounting is an inseparable part of any business, including governmental and non-profit organisations.
Why is accounting important?
Since the prime objective of any business is to make money, it comes as no surprise that accounting is of great importance in every organisation. In more detail, accounting is vital to business because:
1. It helps with statutory compliance
Businesses are bound by law to report their income to the government so that the amount of tax that they owe the government can be determined. Accounting is needed to keep things transparent in terms of what is owed in taxes, and consequently to prevent defaulting on taxes and therefore paying penalties. High-quality accounting also makes things easier in the case of an audit.
2. It helps in tracking and evaluating performance
A company’s financial records are the primary indicator of its health. Accountants play a crucial role in maintaining and updating records of every financial transaction the company undertakes, however big or small, whether it’s remuneration paid to its employees or receiving payment for services rendered.
3. It enables budgeting, forecasting and planning
It’s only when businesses are clear about where they stand financially that they can even begin to think about planning for the future. Accounting helps businesses to decide how much to invest in future projects, how many new employees can be recruited, what a realistic revenue target can be given a certain amount of manpower and resources, and much more.
Studying accountancy abroad – how it is useful
There’s a greater possibility of exposure to world standards and practices if you choose to study accounting abroad. It’s not like there’s anything particularly wrong with the accounting courses available in India; it’s just that, as workplaces of all kinds become more global, and more multinational corporations set up shop all over the world, not keeping up with global trends and practices could see you lag behind in your career prospects.
A greater choice of programmes and subject combinations is a feature of most accounting programmes abroad, as compared to those available in India. This will also give you the chance to learn more about different facets of accounting and explore different career options.
Studying accounting abroad can give you a different perspective on how companies work and exposure to the ‘hows’ and ‘whys’ of different accounting standards in international business. This could well come in handy when you begin your career in accounting abroad or at a multinational company.
International students can also learn more about different tax systems and finance, and business-related laws in another country, knowledge that could be very useful if they plan to continue with their professional journey abroad.
Top universities for accounting
The QS World University Rankings for Accounting and Finance, which are accepted as being among the most credible, have seven American and three British universities in the top ten universities in the world for the field of Accounting for the year 2025. At the top is the world-famous Harvard University, a position it has occupied for several years. The second and third ranks have, over the last few years, alternated between Stanford University in California and the Massachusetts Institute of Technology (MIT). The other American universities on the list are:
· University of Chicago
· University of California, Berkeley (UCB)
· University of Pennsylvania
· Yale University
Three universities from the UK also consistently figure in the list of best universities for accounting courses. They are:
· University of Oxford
· University of Cambridge
· The London School of Economics and Political Science (LSE)
Upon extending the list to include the top 15 or the top 20 universities, prominent names that figure consistently include London Business School, New York University, National University of Singapore (NUS) and Columbia University. More occasional names include the University of New South Wales, in Australia and Bocconi University in Milan, Italy.
The QS rankings clearly indicate that the USA has the best accounting programmes for international students, followed closely by the UK. The quality of the curriculum and the multiple choices these countries offer in terms of different degrees in Accounting have helped them maintain their position as the most favourable study destinations for accounting courses.
What do you learn in Accounting?
Before going into what some of the primary topics in most accounting courses are, let us look into the entry requirements to gain admission to accounting courses. In most cases, students will be required to demonstrate an aptitude for mathematics. Those with prior experience in statistics or business modules are generally considered to be at an additional advantage, although in most cases, it doesn’t take long for those who don’t have such experience to catch up. A select few universities abroad have a provision for students to switch between programmes after their first year, and opt for a track that matches their abilities and interests.
Undergraduate degrees in accounting and finance, which can last between three and four years, can be a Bachelor of Arts (BA) or a Bachelor of Science (BSc). It is generally acknowledged that there’s hardly any difference between the two in most universities in the USA, UK and Australia, except for the fact that BSc degrees might, in certain cases, focus more on the practical aspects, as compared to a BA. Master’s degrees generally last for two years, and one year in the case of the UK. There are also PhDs available, which could end up taking five years for a student to complete.
Students of accounting are generally taught the theoretical and practical aspects of accounting and finance, and the techniques used in professional accounting. While some undergraduate degrees focus solely on accounting, it’s not uncommon for other, related subjects to be offered as part of the accounting degree, such as finance, business management and economics. Some of these are accorded equal weight at times, resulting in a joint-degree format. Finance branches off into financial management and financial analysis, business management involves business administration, and economics will mostly be split into at least two broad categories – ‘macroeconomics’ and ‘microeconomics’.
Specialisations in Accounting
In addition to the foundational basics covered mainly at the undergraduate level, there are a whole host of specialisations available for accounting students to acquire knowledge and skills specific to key areas of any business. Five distinct specialisations are:
Auditing
Auditing involves examining data, records, company operations, financial statements and the overall performance of an organisation for a stated purpose. Students who opt for a specialisation in auditing will learn how to evaluate evidence and follow protocol and procedures to arrive at a judgment and convey this information through what is termed an audit report.
Taxation
Students specialising in taxation will learn to interpret information related to taxation and to apply principles of accounting as required, in accordance with tax laws. Taxation will necessarily involve a study of the history of how policies came to be framed with respect to income, deductions, exclusions, exemptions and credits. Taxation leads to other mini-specialisations such as corporate, individual, or estate taxation, income taxation and corporate taxation
Forensic accounting
The word ‘forensic’ derives from the Latin forensis, which equates to ‘suitable for use in a forum/ court of law’. Forensic accounting can be defined as the process by which accounting principles are used to arrive at conclusions to present, sometimes in a court of law. Students will learn methods of collecting evidence, supporting their clients legally and testifying in court. The topic also encompasses accounting fraud investigation techniques, as well as the prevention of fraud.
Corporate finance
Corporate finance entails adding value to businesses through the process of buying and selling. Students who specialise in corporate finance will learn how to project manage the procedure of raising capital, and oversee the work of reporting accountants, auditors and lawyers, to ensure that transactions are conducted as per the law.
Risk assessment
Risk assessment is a specialisation whereby students learn to hone their logical thinking skills to identify issues and use their knowledge and logic to evaluate the company’s position and how vulnerable it might or might not be to risk. Risk assessment helps organisations avoid problems and capitalise on opportunities. It enables clients to outperform the competition and protect their own reputation.
Career opportunities in accounting
Accounting is a truly versatile degree for international students, since it qualifies them to work in every type of industry and company. Every group, company or entity has some form of accounting need. There are numerous career opportunities for accountants in international business, and things seem set to remain that way since specialist accounting skills will always be in demand. Accounting students can aspire to work as:
· Management accountant
· Auditors
· Stockbrokers
- Actuary
- Insurance broker
- Tax adviser
- Financial analyst
The skills learnt as part of an accounting course are extremely useful and can equip international students for a variety of roles and positions even outside the domains of finance or accounting. As accounting is basically the language of business, accountants can use their skills to start their own ventures and consider entrepreneurship, or consistently work their way up, after a certain number of years of service, to become the CFO or other executive-level designations at an organisation.
With technology’s influence growing in the performing of many accounting duties, sound knowledge of how to harness these tools – in this case, accounting softwares like Xero, Freshbooks, QuickBooks etc. - to make your own and the company’s work easier will stand you in good stead and give you that extra edge over the competition.
A majority of the accounting degrees offered in universities abroad are accredited by a professional body at the national level, such as the UK-based Association of Chartered and Certified Accountants, Chartered Institute of Management Accountants and Institute of Financial Accountants, and the US-based American Institute of Certified Public Accountants. Earning an accredited degree allows students to apply for exemptions from some specific examinations if they wish to dive deeper into the ocean of accounting and work towards obtaining chartered accountant status.
As you can see, an accounting degree from a renowned university abroad can lay the world at your feet in terms of employment options and growth prospects. For skilled and passionate accountants, truly, the sky is the limit!
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