Earning a degree in accounting is an excellent way to improve your chances of securing a stable job with plenty of opportunities for career advancement and increased responsibility. Accountants are always in demand, regardless of the state of the economy.
Many people who are considering a major in accounting mistakenly believe they need strong mathematical skills to succeed in the field.
While numbers play a central role in accounting, an accounting student can have a limited background in maths.Â
Accountants need a certain level of mathematical ability, but they also need core computer skills, strong analytical talents, excellent interpersonal skills, and a natural aptitude for clear and straightforward communication. Maths and accounting are very different subjects, so let’s compare and contrast them.
Let’s get straight to the point
While accountants work with numbers, advanced mathematical skills are not a primary requirement.
We must highlight the importance of analytical thinking, computer proficiency, communication skills, and understanding of financial principles in the accounting profession.
Technology handles most complex calculations, allowing accountants to focus on data analysis and strategic decision-making.
Aspiring accountants are reassured that basic math knowledge and a well-rounded skill set are sufficient for success in the field.
What is Maths?
Maths is the study of the relationships between structure, quantity, and organisation. It permeates every aspect of our lives and can be found everywhere.
Maths is essential in constructing everything we encounter daily, including mobile devices, buildings, works of art, economic systems, and even sports. Maths can be described as applying equations and numbers to solve problems.
What is Accounting?
Accounting involves recording financial transactions, archiving, classifying, retrieving, summarising, and presenting them in various reports and analyses.
For instance, an accountant might input data into a spreadsheet to calculate a company’s revenue over a specific period and compare it to the corresponding expenses to determine the income generated. These figures need to be precise, and accuracy is essential.
Maths in Accounting
It’s a cruel twist of fate that the maths courses required for university accounting degrees are often the most challenging you’ll encounter in your career.
While accountants manage a large volume of numerical data, most of their mathematical work is relatively straightforward.
Accountants need to be familiar with handling numbers to analyse and understand numerical information.
However, they are not typically required to perform complex mathematical calculations. In today’s technologically advanced world, most of the difficult math operations are carried out by computers.
Accounting and Computers
Like almost every other professional discipline, accounting has become increasingly dependent on computers.
Accountants don’t need to be computer experts, but they must be proficient with basic office software to perform daily tasks and communicate with colleagues, managers, and clients.
In routine accounting responsibilities, accountants should have a particularly strong command of computer programs and information technology. Most accounting degree programs now include IT courses to better equip graduates for real-world office environments.
Analysis in Accounting
Computers have become essential in accounting, as in virtually every other professional field. Although accountants don’t need to be IT experts, they must be able to use fundamental office software to carry out daily tasks and communicate effectively.
Accountants should have a particularly strong command of the numerous computer programs and other IT forms used in their daily work. Most accounting degree programs now include IT courses to equip graduates for real-world office settings.
Accounting Communication
Effective communication skills are crucial in almost every aspect of accounting. Accountants need strong interpersonal skills to communicate with clients and colleagues professionally and politely.
This is especially true for auditors and forensic accountants, who often face resistance when gathering information.
Even accountants who work independently or run their firms must connect with others positively. Clients are unlikely to stay with an accountant who makes them uncomfortable.
If the findings of an investigation are not understood, the investigation itself was a waste of time. Therefore, accountants who can communicate effectively and persuasively, transforming complex ideas into comprehensible formats, have a significantly better chance of success.
Maths Courses in an Accounting Curriculum
If you are considering majoring in accounting, you might be relieved to learn that aspiring accountants must be good at research, logic, problem-solving, and using computer software more than excelling at advanced maths.
As an accounting major, you will still need to engage in some form of mathematical study. Accounting majors must fulfil general education requirements like other students, typically including one or two maths courses.
You may need to take algebra or precalculus and an applied or business calculus course. Statistics coursework is also useful, particularly for teaching accounting students how to interpret financial data.
The level of mathematical instruction you receive depends partly on the accounting degree you pursue. Accounting offers various undergraduate degrees, allowing students to tailor their education to their interests.
How Accountants Use Maths
One of the most widespread misconceptions about accounting is that it primarily involves mathematical calculations.
Accountants use formulas to create financial statements, but these formulas are reliable and often require accountants to input the appropriate amounts. Calculators and spreadsheet programs can perform the necessary calculations.
Simple mathematical operations like addition and subtraction handle accounting’s credits and debits. However, accountants must be comfortable working with numbers, particularly percentages, fractions, and decimals.
You will need sufficient mathematical proficiency to pass your exams to earn a Certified Public Accountant (CPA) credential or any other accounting qualification.
Some accountants have stated that the mathematical concepts on credentialing exams are more intricate and challenging than those they encounter daily.
Other Vital Traits for Accountants
In addition to mathematical proficiency, accountants should possess communication skills, analytical abilities, organisational skills, and attention to detail.
Don’t be discouraged if you’re not very good at maths. To determine how much maths you need for an accounting degree, talk to an advisor or career counsellor at your school or an experienced accounting professional.
You might discover that you already have sufficient mathematical skills for the position, and most of your study will focus on learning accounting theories and practical applications.
Although maths is necessary, it is not always the most crucial skill for success in accounting. Depending on your career path, analytical and computer skills may be just as important.
Statistics and business and management classes are typically required in accounting degree programs. While higher-level maths courses might be necessary for your degree, lower-level maths operations and elementary algebra will be the most helpful.
Seeking Help with Maths
If you struggle with maths, consider enrolling in a beginner’s maths class covering the essential topics. You could also use a maths tutor or the school’s maths lab. Limit your review to the topics you need, and use books on elementary maths that offer plenty of examples and problems with detailed solutions.
Major in Accounting
If you major in accounting, you’ll need to complete a course in business statistics and be confident in solving simple algebra problems. Some universities may require more advanced coursework, like linear programming or calculus, but these are rarely used in accounting practice.
These courses often serve as screening tools and confer status on a program. Either learn to live with them or look for another program.
Today’s accountants must navigate various levels of data within a business. They should work towards creating procedures conducive to accurate data entry and setup. Accountants investigate the monetary facts of transactions and understand the character of each line item.
Modern Accounting Skills
Modern accountants need to work closely with businesses to explain data insights and patterns and provide counsel for effective decision-making. Soft skills like communication, persuasion, and salesmanship set today’s leaders apart.
Accountants should be willing to delve into the details of data inputs and transaction flows, but this should be the foundation upon which they build their professional development.
Accountants must understand their role’s value stream to succeed in the profession. They should clearly explain accounting terms to non-accountants and serve as the organisational neck, directing the company towards increased focus and productivity.
Conclusion
In conclusion, while mathematical skills are a part of accounting, they are not the sole or primary focus.
Accounting encompasses a broader range of skills, including analytical thinking, computer proficiency, effective communication, and a deep understanding of financial principles.
Modern accounting relies heavily on technology to handle complex calculations, allowing accountants to focus on analysis, interpretation, and strategic decision-making.
A lack of advanced mathematical skills should not deter aspiring accountants. With the right training and a commitment to learning, anyone with a knack for numbers and an interest in financial systems can succeed in this rewarding profession.
The essential skills for success in accounting extend beyond mathematics, including problem-solving, logical reasoning, and the ability to communicate complex information.
Ultimately, accounting is more than crunching numbers; it’s about using those numbers to provide valuable insights and guidance to help businesses and individuals achieve their financial goals.
By embracing the full spectrum of skills required in accounting, you can position yourself for a successful and fulfilling career in this ever-evolving field.
Frequently Asked Questions
Is Accounting More About Math Or Logic?
Accounting is more about logic, organisation, and attention to detail. While math is part of the job, interpreting financial data and ensuring compliance with regulations is more critical.
Can I Become An Accountant If I’m Not Good At Math?
Yes! As long as you are willing to learn basic math skills and feel comfortable using accounting tools, you can pursue a career in accounting. Strong analytical and problem-solving abilities are more important.
Do Australian Accountants Follow A Different Math System?
No, Australian accountants use the same math principles as accountants worldwide. However, they must be familiar with Australian tax laws and regulations, which may involve specific calculations.
How Can I Improve My Math Skills For Accounting?
Practice basic arithmetic and familiarise yourself with spreadsheets like Excel. Enrolling in an introductory accounting or business math course can also help build your confidence.
Are There Certifications In Australia For Accountants?
Yes, Australian accountants often pursue certifications like CPA (Certified Practising Accountant) or CA (Chartered Accountant), which emphasise technical and analytical skills more than advanced math.
