A course in finance for non-finance executives begins at the University of South Carolina, majoring in Business Administration and a bit later on in business administration.
It is not easy to change your career path as it involves a lot of work and study. Nevertheless, there are some courses from which you can gain knowledge that will be beneficial to make you a better professional and prepare your skills on how to deal with your future employers.
This article will explore one such course in order to educate more about this course.
Finance vs Accounting
What Is The Difference Between Accounting And Financial Management?
It all starts with the definitions of these two terms. One is an account, and another is an accounting procedure. So it is difficult to understand where do they go together as most people confuse them.
However, the word ‘accounting’ has been used to define specific transactions that takes place within an organization when they are being performed by professionals.
On the other hand, ‘financial management’ is defined as the process of managing financial resources and providing information to control or monitor the operations in organizations.
As many companies today have different accounting procedures, it becomes important to define each one separately as they have differences and may require separate training, or may need to support different kinds of clients along the way.
Most companies prefer hiring accounting people for their own business process. However, if you want to become financially adept, you will need to learn financial concepts and know how things work.
That is why any accountant/finance person does not want to hire someone who only knows the basics. In addition, it helps you as you can learn what each role does exactly, and you also learn what responsibilities come with each role.
How Do You Learn To Become A Manager Of Your Company?
For example, you will need to go through several courses before you can achieve the desired position. There are courses offered in colleges to help you get started in becoming a manager.
Some of them include Harvard MBA’s, Stanford University’s, Boston University M2 program, and so on. Once you complete the above mentioned schools/courses, you can start looking for jobs as you can apply for managerial positions under different corporations.
However, one needs to know everything about your job if you want to be successful in getting into a top management role.
Some Key Concepts of Finance
What Are The Different Types Of Accounts?
According to David Anderson, an expert on financial management, each organizational account is divided into four types based on the functions. They include; General, Retail, Automotive, and Industrial and Professional accounts. Let us look at different accounts that can be classified into six main categories.
General – These are basically accounts without any specialization. Generally, a general account would be divided into three main sections: Cash Flow, Income Statement, and balance sheet. Since each company needs to organize its finances in various ways, there will always be a section dedicated for each type.
Retail – There is usually a special division within retail accounts called a warehouse. Warehouse departments handle most goods inventory and related products.
The first thing you need to know about warehouse management is that it is quite complex in nature at times. Thus it might take more than 12 months to master the basic understanding of warehouse management.
Automotive – Unlike the other types, automotive accounts can be divided into two parts, namely procurement, manufacturing, and sales.
Industrial – Under this heading, accounts can be categorized further into industrial production and distribution. However, the former has more detail as it deals with processes.
Professional – Just like the last category, it has a broader set because it handles both services and products. The following subheading can explain some key terms in professionals accounts.
The Main Differences between Accounts & Finances
Asking for help is considered to be one of the biggest mistakes any employee makes. Most employees take time in deciding whether or not to ask for help or not. If asked early enough, they would end up spending much time finding out the help they need or need.
On the contrary, asking for help often costs less than the time spent, but it might cost the employee more time. Many times this happens due to the fact that managers assume that every time a junior staff asks for help, they are either struggling with something or simply have no idea what they are struggling with.
Therefore, managers tend to think that once they receive a request for help it means the issue is already sorted. Unfortunately, they don’t consider whether their decision to accept or reject is the best one, and thus end up wasting much time trying to find answers and fix the problem.
However, the reason should be taken care, and instead of waiting until the next day to ask for help, many people usually prefer getting help now. In addition to that, it helps employees to deal with their problems much faster. Hence they try to get prompt help while making smart decisions
In some cases, companies tend to use a system with which they know all their accounting procedures. When people want help in their businesses, they would get suggestions provided to them.
But since no proper system exists, many companies try to solve issues themselves and that might be costly if done manually. Sometimes, they just send emails. Another solution comes after they get in touch with someone to help and make changes according to the current situation.
By this method, a senior executive or CEO often forgets that things can be complicated, especially if he was busy dealing with hundreds or thousands of accounts.
The Difference Between Funding And Debt
Asking for funding was considered to be one of the most common mistakes made by employees. According to Andrew Campbell, a certified public accountant, fundraising should be treated as the same thing as debt as loans.
Both funding and borrowing should be handled with caution since they are interdependent. Moreover, the funds received at the end of a project should be used properly according to the stated budget and timeline, otherwise the entire project can fail.
A huge mistake that often occurs is the mismanagement of debts instead of giving proper guidance to new projects. With this approach it becomes hard to plan for the right budget and timeline.
So a good accountant should make sure to provide appropriate recommendations like reducing expenses, changing working hours, or even creating a contingency plan to help avoid any unforeseen difficulties during the execution stage of a project.
What is Loan And Finance?
Finance or loan is simply the term given to financial institutions to borrow money to pay it off. After receiving such a loan, the lender has to give back the amount invested in return. Such a repayment of interest would then be termed as finance.
Lenders can also grant loans for specific purposes, with one such purpose being construction. Loans are repaid at a fixed rate of interest based on the interest rates on short-term investments like bonds.
Other lenders can offer financing for long-term items such as education, commercial, residential, agricultural, and so on. While lending is usually limited to individuals, they can easily take loans for corporate entities like startups, firms, and universities.
What Kind of Bank You Need?
There are five different types of banks across North America, each of those having unique benefits. Three of them are large ones, and the other two are small ones. Though only a couple of them are larger, those offer credit cards and private banking to clients.
Private bankers can also be hired for their expertise and advice. Now let us talk about the bank size and benefits that can be obtained using them. The largest bank in Canada has approximately $5 trillion in assets while the smallest one is $11 billion. What is important to note is that small banks are mostly preferred by young professionals and students.
So if you are an accountant seeking financial solutions for your firm, I must say you should apply for one of those banks, particularly big ones. Also, though they are small, they offer very valuable services and you can get them easily.