From preparing balance sheets and cash flow statements to gauging investment, risk and capital structure of firms, a career in financial accounting places you right in the thick of things. It not only involves intensive study of accounting concepts but also incorporates the study of finance, marketing, tax along with modern computer accounting software, for instance, Tally. Interested students can go on to build a career in finance, international business, marketing and other allied fields. Moreover, the demand for professionals with expert knowledge of financial accounting in this field is felt throughout big and small companies alike. This blog, in particular, will focus on the shorter-termed Diploma in Financial Accounting and what it entails.
Diploma in Financial Accounting: Overview
Offered as a one-year course, the Diploma in Financial Accounting program not only imparts in-depth theoretical knowledge of financial accounting but also aims to build practical accounting-related skills. The training in computer-related software such as Tally and Quickbooks included as part of the course enables students to apply learned accounting concepts and principles through computers in a practical setting. The course comprises the study of basic concepts of business principles of accounting, modern practices and processes, financial statements, cash flows, capital structure, mercantile and corporate law and interpreting them in real-life business situations. Individuals develop an understanding of taxation, business ethics and applied research as well. Furthermore, a Diploma in Financial Accounting equips students with the necessary concepts and techniques, builds competence in managerial aspects and develops the expertise to handle constant challenges in the financial sector. The course focuses on strengthening analytical and problem-solving abilities along with communication and interpersonal skills.
The subjects offered as part of the Diploma in Financial Accounting impart knowledge spanning the following areas of study:
Fundamentals of Accounting
Before delving into the advanced and real-life application of accounting-related concepts, the course aims to develop a solid understanding of the principles and fundamentals of accounting. These fundamentals include the relevant principles of accounting, bookkeeping mechanics, debit and credit system, revenue, expenses, liabilities, assets, income statements, balance sheets, and statement of cash flow and so forth.
Financial Risk Management
Running a business concern is steeped in analysis, dealing and management of risks with their respective gains. In particular, financial risk management refers to the practice of identifying potential risks in the business environment as well as minimisation and management with the help of modern tools and techniques. Diploma in financial accounting provides students with knowledge of risk management to deal with such situations. Big firms are in constant search for professionals from risk management background who can help in effectively managing the issues related to finance, for instance, debt and equity structure and much more.
Capital markets are the marketplace where investment-related trades are carried out. While stock markets are their one form, it also includes over-the-counter investment, commodity and derivatives trading, in short providing space to anyone with explicit and implicit claims to capital. Diploma in financial accounting provides students with the essentials of how a capital market works, other concerned institutions and the mechanism they adopt to deal with the thousands of transactions every day.
To pursue a diploma in financial accounting, an aspiring candidate must:
- Have passed 10+2 from a recognised board of education, for example, CBSE, ICSE etc.
- Have studied mathematics as one of the core subjects in the qualifying examination to be eligible for the diploma course.
Note: This is only for indicative purposes. The marks percentage required vary from institution to institution.
Diploma in Financial Accounting: Top Colleges
- University of Oxford, UK
- Centennial College, Canada
- Humber College, Canada
- St. Clair College, Canada
- George Brown College, Canada
- Dublin Business School, Ireland
A Diploma in financial accounting can open doors to a wide range of career opportunities in both the public and private sector globally. A few major options to explore have been mentioned below:
- Research firms
- Public accounting firms
- Multinational corporations
- Consultancy Services
- Accountancy firms
- Underwriting Companies
Management skills are an important factor for working as a financial accountant. Along with providing essential managerial skills such as budget preparation, planning and scheduling, balance chequebooks, financial analytics and capital investment strategies, the Diploma in financial accounting course also builds and polishes much-needed skills related to computer proficiency, communication, social and behavioural, presentation and so forth.
Thus, we hope that this blog has helped you understand the essentials of a Diploma in Financial Accounting. If you’re planning to pursue financial courses and need assistance, get in touch with our experts at Leverage Edu so that you can make an informed choice towards a rewarding career in your field of choice.