Why are our new Accounting grads struggling with debits & credits?
I work at a small boutique public practice firm with around 10 staff members. Recently, we hired three junior staff members who are all new Accounting graduates from our local university. Surprisingly, none of them seem to understand the basic concept of debits and credits. In fact, two of them would refer to them as left and right instead.
Not only do they lack knowledge on debits and credits, but they also struggle with other fundamental Accounting principles. They can’t differentiate between balance sheet and income statement accounts, don’t understand retained earnings, and are clueless about the difference between cash and accrual basis. How is it possible to graduate with an accounting degree without knowing these basics?
As a 26-year-old who graduated in 2021, I find it hard to believe that the quality of education has deteriorated so quickly. I learned all of these concepts in school and understood them from Day 1. It’s a challenge to teach and mentor these junior staff members when they are lacking such essential knowledge. Some of them didn’t even realize that entries need to balance. What is going on in universities these days?
One response
It’s concerning to hear that new Accounting grads are lacking fundamental knowledge such as understanding debits and credits. It’s important to address this issue and find out why this could be happening.
There are a few potential reasons for this trend:
Quality of Education: Universities may be focusing more on theoretical knowledge rather than practical application. It’s possible that students are not getting enough hands-on experience with debits and credits during their Accounting courses.
Changing Curriculum: Accounting education may have shifted focus to other areas, leading to a lack of emphasis on the basics. It’s important for universities to ensure that students are well-rounded in all aspects of accounting, including the fundamental principles.
Learning Styles: Some students may learn better through practical experience rather than theoretical lectures. If universities are not incorporating enough practical exercises or real-world examples, students may struggle to understand concepts like debits and credits.
Student Engagement: It’s possible that some students may not be fully engaged or motivated to learn the basics of accounting. Without a clear understanding of the importance of debits and credits, they may not see the relevance of these concepts in their future careers.
To address this issue, it’s important for both universities and employers to work together to ensure that accounting graduates are well-prepared for the workforce. Universities should consider incorporating more practical exercises, real-world examples, and hands-on experience into their accounting curriculum. Employers can also play a role by providing training and mentorship to new grads to help bridge any knowledge gaps.
Overall, it’s crucial for universities to ensure that their accounting programs are preparing students with the necessary skills and knowledge to succeed in the workforce. By addressing this issue early on, we can help bridge the gap between theoretical knowledge and practical application in the field of accounting.