Accounting is summarizing of all transactions at one place to reflect a company`s financial position. Theory makes you knowledgeable but unless you know how to apply this knowledge in real scenario or the true working environment you cannot become a successful accountant.
In books, the examples of topics are set in perfect scenarios but when you work on them in real life, you will realize that situations you are working on are full of imperfections and you will have to apply your mind to be successful in achieving the goal of the company.
In many of the professional courses, practical training is compulsory like articleship for Chartered Accountancy course, internship for CS course, work experience for CFA etc. This is to ensure that you are aware about the challenges that you may face in real conditions and how you will resolve them tactfully.
You have purchased goods from Mr. R for Rs. 5,00,000 on a credit period of 90 days and if you make a delay you will have to pay interest @12% p.a.
You made the payment to Mr. R in 150 days due to funds constraint and hence you are liable to pay interest for 60 days to him, which is Rs. 9863.
If you think that this is correct then you are wrong.
Due to lack of practical training you forgot that Tax Deducted at Source (TDS) was deductible on it as interest payment is for more than Rs. 5000. Non deduction of TDS will make the expenses disallowed under Income Tax Act. If you had practical training in Accounting then I am sure that such a problem would not take place. So I hope that I have convinced you that practical training is must. If you are still not convinced then read further to know the benefits of practical training.
Benefits of Practical Training: Ladder to Golden Job Opportunities:
If you have practical training in accounting then you are already one step ahead of others and that will help you to secure a good job. Apart from this, there are various other benefits like:
- The chances of hiring the candidates with analytical and communication skills is more as they are independent and competent. These skills can be acquired through Practical training or Working Experience which is basic to aspirants entering the jobs sector as the training program or internships would provide them with the essential practical knowledge required by the profession of accounting.
- Practical training programs make the students attain meaningful professional education. In recent years, increasing number of accounting firms, businesses and companies are using the services of accounting students as interns, thereby giving career opportunities to the students who gain real world experience and the employers in turn obtain low cost help during busy seasons, without the long term commitment and cost of a permanent employee.
- The students can develop of one of the key skills, i.e. Human Relations in a work environment.
- Practical training helps you to sharpen the skills during the training phase by the accounting firms/ businesses. It will give you a clarity about your career and you can choose your stream wisely.
- The training also helps students to perform well and increase their career options through their increased exposure to firms due to practical training.
Hence, based on the discussions above, we can conclude that through practical training students can gain as much information and skills as possible to accustom themselves with the real world business and accounting problems.