What is Accounting?
Accounting is essentially a service to management which concentrates on the financial aspects of business. It is concerned with the recording, analysis, and interpretation of financial data and often provides the basis on which management decisions are based. It divides broadly into two areas. Financial Accounting deals with the recording and presentation of financial transactions in a manner which conforms with the law and accounting conventions and serves the needs of a variety of users external to the business: shareholders, bankers, loan creditors, employees etc. Management Accounting is concerned with the detailed financial information required internally to run a business, for example budgets and budgetary control, costing systems and investment appraisal techniques. The 'A' level syllabus also requires students to think beyond mere financial considerations and to consider the wider social and economic consequences of business decision making. Far from being dry and boring, accounting is at the very heart of every business activity and is a rewarding and challenging subject to study.
What other subjects go well with Accounting?
Accounting combines well with a number of other subjects. The related disciplines of Business Studies, Economics, Law and Mathematics are obvious. Students looking for a broader programme have often included Accounting with the study of a language, or with science subjects; this approach mirrors some of the developments at university where language, science and engineering courses often include aspects of Business Management (optional or compulsory).
What will I gain from studying the subject?
Quite apart from those who may be considering Accounting as a career and who would benefit from taking the 'A' level, a wide range of students will find that the skills of analysis, evaluation and decision making fostered during the course have application at work or in higher education. Equally useful will be the ability to take objective decisions based on data and the skill of preparing clear reports and recommendations. A broad knowledge of the financial aspects of business will be developed which will be valuable for anyone contemplating a career in business and management as well as for entrepreneurs who are keen to develop their own business. The financial and business pages of newspapers and journals will be more readily understood.
Do I have an aptitude for the subject?
A genuine interest in the business world and the financial aspects of business will lay a foundation for studying Accounting at 'A' level. In particular, the subject will appeal to students who have sound numeracy skills and a reasonable standard of written English, who can grasp and apply concepts and rules. They should enjoy not only the mechanical and computational aspects of the subject, but also the opportunity to be analytical, to consider alternatives and make recommendations based on their calculations. It is not necessary to have studied Accounting at GCSE level, although students who have done so will have a head start. In common with other 'A' levels, to achieve the higher grades requires a depth of understanding of concepts and an analytical ability which challenges the students to move beyond the basic skills level.