IS ACCOUNTING A LIFE SKILL?: 03

ANALYZING PERFORMANCE

Analyzing financial data is one thing accountants do regularly. A common example is a horizontal or trend analysis which compares account balances and ratios over different time periods. For example, you compare a company’s sales in 2018 to its sales in 2019. So where can this skill apply in life?

One area where this skill can be applied is in school. The minute you receive your results you can assess where you stand in relation to your previous mark or a goal you had set for yourself.If you are not satisfied with your current mark, you can easily focus on ways to improve your grades. Accountants also do this—they analyse weak spots and look for ways to improve the numbers.

#MissMbeleTutorSources:

Why is Accounting Important in Everyday Life?, ECPI University, June 5, 2017