The need to learn bookkeeping, no less than today’s college student, who will, of course, be entering the workforce one of these days. It is not just for accountants. Any college student, in any given field, who wants to get the edge on the competition, has to know bookkeeping as a basic record-keeping of finances. For students asking “write my essay for me UK” to help craft their academic papers and job applications, UK Writings is a great option. Ukwritings offers professional writing assistance, including resume writing services, which can help students highlight their bookkeeping skills effectively when applying for entry-level positions in finance or accounting.

This article is about those instrumental skills of bookkeeping which will help any student in college to be able to perform better in his/her future career.

The Basics of Bookkeeping

Bookkeeping is the art of keeping a record of the money produced and consumed by an enterprise. It is the foundation of accounting and financial management. Technical terms include:

  • Assets: Things of value that a company owns
  • Liabilities: Debts or obligations a company owes
  • Revenue: Money earned from sales or services
  • Expenses: Costs incurred in running the business
  • Equity: The owner’s stake in the business

These definitions are necessary to interpret a set of financial statements, and the summation of their collective meaning requires an understanding of their relationship, which is symbolised by the accounting equation, Assets = Liabilities + Equity. This equation undergirds the accounts I have listed above, and at the centre of it is double-entry bookkeeping methodology, the system still used by the vast majority of businesses around the world today.

Learning these concepts can provide a good start for understanding how a company measures its financial health and can help you track how much money is ‘debiting’ your bank account, how much is ‘crediting’ it as expenses, and how much is ‘credit’ you are keeping for yourself.

Mastering Double-Entry Bookkeeping

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One can keep accounts by double-entry bookkeeping which means that for every transaction you record a debit to one account and a credit to another account, so that in the end you obey the rule that for every debit there is a credit.

For example, if a business buys $1000 worth of inventory:

  • The inventory account (an asset) is debited $1000
  • The cash account (also an asset) is credited $1000

It does show that the company carries more inventory for the same amount of cash. The total assets are still the same; the debit side is still balanced by the credit side; the accounting equation still holds.

Learning some of the basics of double-entry bookkeeping – how the various parts of a business are affected by the same business transaction – is a good place to start, and anyone who has ever used financial records or reports will understand it.

Familiarising Yourself with Financial Statements

Financial statements are representations of a company’s financial status. The three most common types are :

Balance Sheet

It provides us with the net assets (total assets minus total liabilities) of a company and the owner’s equity (or net worth) at a particular point in time. It’s a snapshot of the financial health of a company.

Income Statement

Or the income statement (also known as the profit and loss statement), which tells you the total amount of income, expenditure and the net result – a profit (when income is greater than expenditure) or a loss (when expenditure is greater than income). A company is a bird that makes or loses money. In addition to these, there are other financial reports that companies can prepare to give a better picture of their financial health. For example, ‘statement of cash flows’ shows the sources and uses of cash, or the changes in cash, over a period of time.

Cash Flow Statement

This shows the movement of money in/out of the business and how well the business covers its liabilities and funds operations.

Categorising them will help you to comprehend what a company’s financial state means. Knowing how to read and interpret such reports can be beneficial for any job, financial or otherwise.

Learning Bookkeeping Software

Bookkeeping is frequently done on a computer using specialised software. It can be very helpful for job prospects if you are familiar with popular bookkeeping programmes.

These programmes automate a lot of the bookkeeping, which makes it go faster, plus increases its accuracy. They generate expense, financial and invoice reports and manage payroll.

Some of these have free trials or student versions, so use them to practise and improve your skills. Online tutorials and courses can also teach you to use them properly. Having actual hands-on experience with these tools makes you a more adept technologist as well as making you act and feel more confident about potential jobs. Becoming familiar with more than one software platform (such as QuickBooks, Xero and FreshBooks) makes you more versatile and therefore a more attractive candidate. Similarly, learning how one tool communicates with other business software such as spreadsheet programmes, point-of-sale systems, or tax-prep programmes helps you stand out. The more you make yourself up-to-speed with the technology a prospective employer is using, the more attractive of a candidate you are.

Once you have some experience, work on a small project, or an internship, that uses these tools in real world contexts. Not only will it solidify your experiences, but you’ll also have a valued physical example to include on your résumé. Keep an eye on the most recent versions of the software you use, and any new features they introduce. Bookkeeping software advances regularly, so your work is cut out for you to keep up with the evolution, and stay competitive in the job market.

Tax Basics

While most people merely rely on their accountants to take care of complex tax issues, it’s useful for everyone to understand the basics of taxation. The areas to concentrate on are:

  • Different types of taxes (income tax, sales tax, payroll tax)
  • Tax deductions and credits
  • Filing requirements for individuals and businesses

This knowledge should help you navigate your personal tax affairs, and also comes in useful for a large number of jobs you might have throughout your career, particularly if you work with small businesses or startups.

Remember, of course, that tax laws are subject to frequent changes. Keep abreast of them by reading respected financial news sources or, even better, by visiting the website of the Internal Revenue Service.

Developing Analytical Skills

Bookkeeping is as much art as science. As well as recording the numbers, you have to interpret them. By improving your analysis, you will use your financial facts to make better decisions.

Practice looking at financial statements and asking questions like:

  • Why did expenses increase this month?
  • Is the company’s cash flow sufficient to cover its debts?
  • How has the profit margin changed over time?

Such analytical skills are useful for any career, enabling you to make sense of stories behind the numbers and better equipped for taking decisions. While developing these skills independently is crucial, students can also benefit from online research paper services to gain insights into complex financial topics and enhance their understanding of analytical approaches in bookkeeping and finance.

Maintaining Ethical Standards

There are several different reasons why ethics can be very important in bookkeeping and finance. The main reason why accurate and honest financial reporting is important is, without proper recording, many businesses could not operate legally and ethically. This is important, because it will make sure businesses operate and run effectively in a legal way, this is the main ethical issue in businesses. Other major ethical issues in business are:

  • Accuracy: Ensure all records are correct and complete
  • Confidentiality: Respect the privacy of financial information
  • Integrity: Avoid conflicts of interest and report any irregularities

Adhering to these ethical standards will stand you in good stead in any profession – you gain the trust of employers, clients and co-workers.

Conclusion

Having these bookkeeping skills as a college student will advance your career prospects. They are useful in more than just finance-related jobs; you need them in any job that involves understanding or making business decisions.

Learn basic bookkeeping and double-entry accounting. Become familiar with financial statements and common bookkeeping software. Develop your analytical interpreting skills. Stay up to professional standards, and do it with ethics.

It just requires starting off slowly. You don’t have to be any good to practice — you just have to be willing to start in a small way, and improve that skill from moment to moment over the course of your lifetime. Online courses, textbooks, and even practise software for maths are widely available.

Simple as these things are, take a little time to become familiar with them now and you will be in a better position for any aspect of your working life that involves money – whether you are running your own business, a division of a business, or just want to have a better grasp of your company’s financial affairs.

As you embark on your professional life, don’t underestimate these financial skills. This aptitude for bookkeeping might be the supra-qualification that could swing the bullet point in your favour in your race against other candidates, to help you land the job of your choice. With a strong grasp of these accounting fundamentals, you’ll now be in a ready state to surmount the financial dilemmas and opportunities in your professional career.

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