Kick Start Your Career Using Accounting
Making a name for yourself while in your 20s can be challenging—to say the least. Going up against men and women twice your age can put quite the damper on your confidence and self-esteem. Nonetheless, you can make your youth work for you by getting an early grasp on the accounting skills which your colleagues most likely learned later in life. Proficiency in these areas will permeate into other areas of your life apart from work. You’ll have the tools to manage your personal finances, assess the value of your investments and have a general understanding of how to utilize your talents to their fullest potential.
Learn the Language
The first step to grasping any new concept is to learn the basics. In this case, having a fundamental understanding of the terms used most frequently.
Assets: Assets are anything which possess value to yourself or the business. Fixed assets take into consideration the depreciation of non-moving assets like equipment, land or even buildings. Current assets are much more liquid—meaning they can easily be converted to cash. Current assets include accounts receivable, inventory, liquid items, and cash on hand.
Balance Sheet: A balance sheet is essentially a financial report which tracks the inflows and outflows of money. The words financial statement and balance sheet are sometimes used interchangeably to describe a document which depicts the financial health at a given point in time or broader period.
Capital: Capital describes an asset and its intrinsic value. Working capital is equivalent to your current assets minus your current liabilities.
Liabilities: The word liability is far from novel. It gets thrown around in casual conversations and pretty much means the same thing in business dealings except with monetary figures attached. Liabilities are debts or obligations that require repayment in less than a year (current) or over a year (long term).
Equated for Success
Algebraic algorithms are not restricted to school exams and homework assignments.
Net Worth = Total Assets- Total Liabilities
Assets, as previously mentioned, are items of value while liabilities are equivalent to your financial obligations (what you owe). So how does this apply to building a career? Well, when moving forward to determine your net worth, it’s crucial to know the assets you’re working with and contrarily, where your shortcomings lie. That way you can better direct your efforts to minimize your liabilities and increase your assets, thus increasing your net worth.
An organized filing system should run like a well-oiled machine. Having everything in its own special place will save you time and energy down the road. Likewise, if you don’t stay up to date with paperwork, bills, and your priorities, eventually it will fall apart. So why not stay ahead of the game. As an added benefit to staying organized, you’ll be ready to go when tax season hits.
Lawrence Levy, CEO of Levy and Associates, stresses the importance of having an orderly structure in place.
“One of the best things that you can do is set up a system for the current year’s paperwork right now. Starting early in the year, before you even file your taxes for the prior year, you can start filing the papers that you need to keep. This will help make tax time easier when next year rolls around.”
A little ethos goes a long way in the business world. Personal ethics gives your employer a glimpse of your moral compass and depending on the direction it points (hopefully you demonstrate integrity), your career and credibility could get a major boost. Unethical behavior is an immediate red flag and likely to negatively impact your credibility and reputation. In all your dealings, practice the same level of courtesy you would expect to find if you were the customer.