October 20, 2015
Accounting is summarising 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.
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:
Now the question that clicks our minds is “What If I do not go for the practical training at all”…
Where to acquire the practical training: Destination
The students can acquire the Practical Training of Accountancy at Institutes working in this field. In recent times, one of the most popular and new course “Business Accounting and Taxation (BAT)”by EduPristine offers sound practical training to the students along with indepth practical approach and knowledge of all the important topics and this six months course certainly supports the students in moving up the ladder of success at faster pace.
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.