Different industries will have various standards when it comes to accounting processes. This is largely a result of the nature of the particular business.

Let’s look at different accounting for different industries Start-ups, for example, may need to keep a close eye on owner’s equity. However, a small business that started with an entrepreneur’s savings will not initially have any investors. For both, capital is key to growth. The construction industry is an example of one sector that must account for a large amount and variety of raw materials on their books.  This means that accountants must spend more time managing inventory than some industries. Another industry that spends more time on inventory might be wholesalers. Service-based industries, such as legal firms, will spend more time collecting on unpaid invoices and this will affect the bookkeeping process. Technology companies might have fewer fixed assets to keep track of, since most of their work is done on computers or ‘in the cloud’. This means that accountants will need to focus more on managing operating expenses and employee wages. Good cash flow is essential across all industries. Especially in those where invoices might go unpaid for longer than 30 days. No matter which industry you work in, it’s important to have a strong foundation in the basic principles of accounting. As long as you learn the generally accepted standards of the profession, you should have no problem adjusting your practices to a different sector. Our financial literacy courses are designed to help anyone learn the core principles of accounting. And, most importantly delegates leave knowing how to apply them in a real world environment. Accounting literacy will build you financial literacy and in turn will build you business acumen. Learn more about how Colour Accounting™ can help your people and business grow in out dynamic and interactive one day workshop.]]>