Accounting is an often overlooked career, and yet it is a skill that’s used regularly in daily life.

While
it’s true that accounting is most typically viewed as an essential part of the business world, you’re
most likely performing some type of accounting task in the “real world” as well. Here are just a few
ways you may be using accounting and don’t even know it.

Reconciliation: Making Sure All Your Charges are Correct

Most people like to know how much money they currently have, which means they check it on a
regular basis to verify charges. Think about it: when is the last time you logged into your bank
account? What were you there for?

Chances are you were checking the balance and looking to see that all the charges were correct. In
the accounting world, this is known as reconciliation. Accountants use two sets of records to ensure
that the money balances at the end of a recording period. You are reconciling by using receipts or
check registers to make sure that everything that cleared your bank account matches what you have
for your spending.

Budgeting and Managing Your Spending

What happens if you spend more money than you have? The answer isn’t pleasant to think about.
When you overspend, you are left with a zero or negative balance, and often you incur additional
banking fees that put you further in the hole. To prevent this from happening, people usually use a
budget.

You create a budget by looking at your income and your expenses and make sure that at the end of
your pay period you have enough to cover everything. If the numbers don’t line up—in other words, if
you spend more than you make—that’s when you budget and work to manage your spending. You do
this by cutting down expenses in some areas (such as dining out or entertainment) so you “make ends
meet” each month, and hopefully have something left for savings.

An accountant is doing the same thing for an individual, business or organization, but usually with a
different goal in mind: to make a profit. They look at cash flows, expenses, inventory, and more. The
goal is to have a positive balance at the end of each cycle or period.

Planning for the Future

In economically unstable times, it’s common for people to assess the future. The desire is to have
enough so you can stop working, pay for your child’s college tuition, have money for a vacation, a
home, or a car. You’re planning ahead financially, and the ultimate goal is a healthy financial future.

Accountants also are consistently working to maintain and expand the financial health of businesses.
They do it several ways—just like you do. Investments, savings goals, analyzing, debt control and
profitability are just a few key concepts in financial planning. Every time you sit down and think about
how you’ll have the money to do important things you are using accounting skills.
Getting Better Grades

School is another place many people use accounting skills. The minute you receive grades you assess
where you are. If you don’t like the current standings, you assess what grades you’ll need for the rest
of the quarter or semester to end up with the overall grade you want. You also know that those
grades affect your future, so you may take action based on the assessment. Accountants also do this
—analyze weak spots and look for ways to improve the numbers.
Accounting is the process of gathering, recording, summarizing and analyzing financial transactions or
data. Accounting skills can be used to apply to your everyday life, and for a life-long learner thirsting
for knowledge and intellectual stimulation there are many great applications. Life as an online learner
can be much more manageable if you are armed with accounting skills.

For example, accounting skills can be used to analyze the grades you received from assignments and
exams. By recording and summarizing that data in a spreadsheet, you can analyze it and pinpoint the
subject areas that you need the most help with; then you can easily focus on ways to improve your
grades. Also, you can further break down the recorded data and analyze the amount of time you spent
on each of those assignments. Once you identify the subject areas that you are weak at, you can
devote more time to them or seek out tutoring services.

Additionally, accounting skills can come in handy when it’s time to manage your spending. With
college tuition, books and supplies, and living expenses, your cash outflows can get out of your
control. Obviously, if your cash outflows are greater than your cash inflows (whether it be from federal
student aid or work), then you are not budgeting wisely. However, if you record and summarize your
cash flow activities in a spreadsheet, such as Microsoft Excel, you can easily analyze that financial
data and adjust your spending habits accordingly.

Furthermore, accounting skills can also be applied when it comes down to making smart financial
investments. With accounting skills, especially when acquired from an accounting degree program,
you are able to make wise investment decisions. For example, if you decide on investing your hard-
earned money on a company’s stock, being able to compute profitability, liquidity and debt ratios, you
can analyze a company’s publicly disclosed financial statements; and thus make good investment
decisions based on your analysis.

Best of all, accounting skills are well sought after by employers. Practically every organization requires
an accountant with accounting skills to help keep track of the day to day financial activities.

Accounting skills are very practical, and can be applied to many areas of your life. As mentioned,
accounting skills can be applied when analyzing course grades, managing expenses, or making smart
financial investments. Also, accounting skills are in demand by employers. For that matter, you should
acquire the necessary accounting skills and make life easier.