As you consider career options, you may find yourself drawn to jobs in the accounting profession. However, especially if it’s been a while since you’ve been in a math class, you may find yourself wondering what types of math skills you will need for an accounting degree.
The Good News
Here’s the good news. It may come as a surprise, but math, though important, is not necessarily the main skill you will need in accounting. Mastering basic math formulas will be important, but other skills will also help you toward success. Computer skills and an ability to analyze and manage data may be equally or more important, depending on what kind of job you pursue.
Accounting programs usually require business and management courses as well as statistics. While some degrees may require a higher math course, it’s really lower math operations and basic algebra that will help you most. So if you struggled through calculus in high school or managed to avoid it entirely, don’t despair. Most accounting programs will have a good, basic math class to bring you up to speed. A comfort level with whole numbers, fractions, decimals, percentages, ratios, order of operations, exponents and some general algebra is what you will most often need to draw on in accounting work.
Remember that a lot of mathematical work these days is handled via computers, so you may need less skill in doing the actual calculating but plenty of confidence in knowing how to set up and input the data, run a spreadsheet and then analyze and interpret the data once it’s all entered. Staying abreast of current and emerging technology will be very helpful.
Analyzing and interpreting data may be one of the most important skill sets of all. If you have shown aptitude in quantitative, problem-solving abilities, it is likely that you will be well prepared to study accounting and to eventually pass your CPA licensing exam. And while math is one way to work on your quantitative skills, you may find that courses in logic, economics or physics may be just as important.
Much of what you will end up studying may depend on the kind of accounting job you pursue. In general, you will likely find an ability to follow specific accounting procedures and to understand tax law important. You may need to study certain kinds of skills and procedures, such as those needed to become a financial auditor or to handle a company’s payroll.
Concluding Thoughts
Experts seem to agree that a lack of confidence in math shouldn’t stop you from pursuing an accounting degree if you have good basic skills and a willingness to review and solidify those skills. Accounting is not simply crunching numbers, but being able to use the numbers to help individuals and companies achieve their financial goals that matters the most. If you have an interest in pursuing accounting, knowing what types of math skills you will need for an accounting degree is important, but gaining a broader view of an accountant’s job overall will truly help you decide whether to enter the field.
A comfort level with whole numbers, fractions, decimals, percentages, ratios, order of operations, exponents and some general algebra is what you will most often need to draw on in accounting work.
Algebra. Double-entry accounting requires an understanding of algebra to balance debits and credits. Accountants also use algebra to calculate liabilities and depreciation. Understanding algebraic equations helps accountants manage financial data and recommend strategies.
Expertise in mathematics is not required for you to succeed as an accountant. The core skill needed is the confidence and ability to be able to add, subtract, multiply, divide as well as use decimals, fractions and percentages.
Although numbers may play a major role in their profession, accountants do not need to be mathematical wizards to be successful. Communication, interpersonal, analytical and computer skills are actually more important than math in accounting.
Accountants and bookkeepers work with numbers and financial data all day long. Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply. As a bookkeeper, your attention to detail must be almost preternatural.
Earning a degree in accounting can be challenging due to the complex nature of the subject matter, however it is not necessarily categorized as math-heavy. Students who are dedicated, diligent, and hard-working can successfully earn an accounting degree.
It's basic addition, subtraction, multiplication, and division. Possibly some light, entry-level algebra, but that's it. You don't have to understand calculus. You just need the mental ability to associate abstract information (numbers printed on a page) with real-world quantities (money and other valuables).
While finance requires some mathematics training and some knowledge and skills in accounting and economics, it's not necessarily more difficult than any other field of study, particularly for people with an aptitude for math.
Accounting is built on the fundamentals of addition, subtraction, multiplication, and division in basic arithmetic. Financial statements, budget balances, and daily transaction monitoring all depend on these procedures. Arithmetic will be used to examine financial documents and verify that the amounts add up.
Salaries are typically based on education, certification, years of experience, credentials, industry or employer, job description, location, and complexity of work. According to the U.S. Bureau of Labor Statistics for 2021, the national average salary for bookkeepers was $45,560 and for accountants was $77,250.
The Income. It is absolutely doable to hire a team, keep your hours low, keep your presence high, and still have your bookkeeping business be wildly profitable…as in, five-figure months and six-figure salary years profitable.
If you enjoy math, data analysis, logical thinking and communicating information to other people, you may enjoy being an accountant. You can also consider shadowing a practicing accountant to learn more about the details of the career and whether you would enjoy it.
Most accounting programs do not require students to take calculus, but some do want to see that students in their program have previous experience with calculus 1.
One thing that's for sure is the high amount of math you will need to study. Finance is a mathematical discipline, so if you aren't as comfortable with math as with other ways of thinking, you may find it more challenging. Additionally, finance also makes use of a vast, highly specific vocabulary.
The very first classes you take in accounting should provide a challenge but shouldn't be anything to lose any sleep over. In your very first accounting classes, you're likely to learn about some simple accounting concepts, but if these are all entirely new to you, then there'll be a lot to learn.
Financial Mathematics is the field of applied mathematics that involves defining problems in finance and providing solutions using methods that draw from probability, statistics, differential equations, optimization, numerical methods, and data science.
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As you consider career options, you may find yourself drawn to jobs in the accounting profession. However, especially if it’s been a while since you’ve been in a math class, you may find yourself wondering what types of math skills you will need for an accounting degree.