Why are our new Accounting grads struggling with debits & credits?
I work at a small boutique public practice firm with around 10 people. Recently, we have hired three junior staff members who are recent Accounting graduates from our local university. Surprisingly, none of them seem to understand the basic concepts of debits and credits. They would refer to them as “left” and “right” instead.
Moreover, these new hires lack fundamental Accounting knowledge such as understanding the differences between balance sheet and income statement accounts, the concept of retained earnings, and the distinction between cash basis and accrual basis accounting. It’s baffling to me that someone can obtain a degree in accounting without grasping these essential concepts.
How is it possible for someone to go through four years of an accounting program and still struggle with these basics? As a young professional who graduated in 2021, I find it hard to believe that the quality of education has deteriorated so much in just three years. It is challenging to mentor and teach these junior staff members when they cannot even comprehend the basic principles of accounting, such as the need for entries to balance.
One response
It is definitely concerning to hear that new Accounting grads are lacking a fundamental understanding of debits and credits, as well as other basic Accounting concepts. There could be several reasons why this may be happening:
Curriculum Changes: It’s possible that the Accounting program at your local university has made changes to its curriculum in recent years that have resulted in a lack of emphasis on traditional accounting principles like debits and credits. Universities may be focusing more on technology and software skills rather than core accounting knowledge.
Teaching Methods: The way accounting concepts are taught in university may vary, and some students may not have grasped the fundamental principles due to ineffective teaching methods. It’s important for universities to ensure that students have a solid understanding of basic accounting principles before moving on to more complex topics.
Student Engagement: Some students may not be fully engaged or taking their studies seriously, which can result in gaps in their knowledge. It’s possible that these junior staff members did not pay enough attention to the basics during their time in university.
Rapid Advancements in Technology: With the rapid advancements in accounting technology and software, some students may be relying too heavily on these tools to do the work for them, rather than understanding the underlying principles. This could lead to a lack of understanding of basic accounting concepts like debits and credits.
To address this issue, it may be helpful to provide additional training and mentorship to new grads to help fill in the gaps in their knowledge. This could involve taking the time to explain basic accounting principles, providing resources for them to study independently, and offering additional support as needed.
Additionally, it may be beneficial to communicate with the university to provide feedback on the preparedness of their accounting graduates and suggest potential improvements to the curriculum. By working together, both the university and employers can help ensure that new grads are adequately prepared for the workforce and have a strong foundation in accounting principles.