The History of Accounting

Accounting is as old as civilization and one of the most important professions in business and economics. Accountants participated in the development of cities, trade and the concepts of wealth and numbers and participated in the development of money and banking. They invented double entry bookkeeping that saved many Industrial Revolution inventors and entrepreneurs from bankruptcy, helped develop the confidence in capital markets necessary for western capitalism, and are central to the information revolution that is transforming the global economy.

What is Accounting about?

Accountancy is communicating financial information about a business to people such as stakeholders and managers. This information generally takes the form of statements which show the resources of a business in monetary terms. Businesses need to be profitable in order to survive and grow and Accounting is an essential part of everyday business.

Accountancy is a branch of mathematical science that can show the causes of success or failure in a business. There are three main divisions; accounting, bookkeeping and auditing.

What skills will I develop?

As you study accounting you will develop:

• An understanding of the importance of effective accounting information systems and an awareness of their limitations.
• An understanding of the purposes, principles, concepts and techniques of accounting.
• The transferable skills of numeracy, communication, ICT, application, presentation, interpretation, analysis and evaluation in an accounting context.
• An appreciation of the effects of economic, legal, ethical, social, environmental and technological influences on accounting decisions.
• A capacity for methodical and critical thought.

An Overview of the AS and A2 Course

At AS, we examine the fundamentals of record-keeping and the purposes, techniques and consequences of effective financial accounting. We consider how financial accounting helps in measuring, monitoring and planning of successful business operations. We learn to prepare Income Statements (Trading, Profit and Loss Accounts) and Balance Sheets and how to use Ratio Analysis to analyse the performance of profitability of businesses. We study business ownership, control and budgeting for Sole Traders and Limited Companies.

At A2, we help students to develop their understanding of Sources of Finance, Financial Accounting and Management Accounting. We examine Partnership Accounts and Manufacturing Accounts using International Accounting Standards. We study in greater depth how accounting techniques aid business management and decision-making. We cover different methods of Costing (Marginal, Absorption and Activity Based) and look at Capital Investment and Cash Flow Statements.

Careers Paths

A-level Accounting gives you an understanding of how and why businesses should manage their resources and this is a strong foundation for studying Accounting or any Business or Economic related subjects at higher levels in University. After University you can go to work in different fields of Accountancy and go on to take a professional chartered accountancy qualification.

Alternatively, after college, you can enter the workforce directly and work for an accounting firm, private company or government branch and study for an Accounting Technician qualification at night or by day release.

In the future you may want to start your own business or consultancy and knowledge of accounting will be very useful.

Every industry has their own specialism for Accountancy which means that there are many options for you to choose from. Small businesses may employ a bookkeeper / accountant, while medium to large sized businesses will have Finance / Accounting Departments with different sections such as Income, Creditors, Payroll, Treasury, Management and Financial Accountants.

Come and study accounting with us and equip yourself for any business environment.

Peter Raftery
Subject Leader for Accounting