What is financial accounting, and why is it important?

Financial accounting is the process of recording, categorizing, and reporting the transactions of a business. In contrast to other fields in accounting such as personal accounting or managerial accounting, financial accounting is specifically concerned with the preparation of financial statements for public use as required by banks, government regulators, shareholders, and other stakeholders. These statements typically include a company’s income statement (also known as a profit and loss or P&L statement), balance sheet, and statement of cash flows. Accurate financial accounting plays a critically important role in financial management, as these statements collectively provide an agreed-upon framework for both internal and external parties to evaluate the financial health of a company. As such, professionals in this field must have a rigorous understanding of accounting terminology and concepts as established in the Generally Accepting Accounting Principles (GAAP) that are standard in the U.S. - and potentially the International Financial Reporting Standards (IFRS), which are increasingly used by multinational corporations.

What kinds of careers can I have with a background in financial accounting?

Businesses of all kinds must produce financial statements in line with GAAP and IFRS methodologies, as required by taxation authorities as well as potential investors and lenders. Thus, accountants with the ability to organize and maintain financial records, rigorously apply financial accounting principles, and produce clear reports according to these standards are always in demand. According to the Bureau of Labor Statistics , accountants and auditors earned a median annual salary of $71,550 as of May 2019. These jobs are expected to grow as fast as other jobs in the economy, since they are dependent on the growth of businesses requiring their services. And, while entry-level positions may require only a bachelor’s degree in accounting, job prospects will be best for those with Certified Public Accountant (CPA) recognition, a masters of science in accountancy, or a master’s in business administration (MBA) with an accounting concentration.

Can I learn about financial accounting through online courses on Coursera?

Absolutely. Coursera offers a wide range of courses and Specializations in business and finance topics, including financial accounting, from top-ranked schools such as the University of Pennsylvania and the University of Virginia. You can even pursue a masters of science in accounting from the University of Illinois at Urbana-Champaign’s prestigious Gies College of Business - a top-three university in the field. Regardless of whether you’re a beginner looking for introductory-level education or a mid-career professional looking to dive deeper into a specific topic or pursue your master’s degree, Coursera lets you learn remotely on a flexible schedule that fits with your existing work or family life. And, with a lower tuition than on-campus alternatives, you don’t need to be an accounting expert (yet) to know that learning online is a smart decision for your own finances.

What skills or experience do I need to already have, before starting to learn financial accounting?

The skills and experience that you might need to have before starting to learn financial accounting could include having a strong interest in understanding financial statements and being comfortable working with numbers, spreadsheets, and income statements. To do this work, you might need to already have a good sense of financial discipline. This might include having organizational skills, paying close attention to detail, as well as being capable of both analytical and critical thinking. Because financial accounting involves preparing financial statements for companies to show their financial performance and status to interested outside parties, it's crucial that those working in financial accounting get the numbers absolutely correct.

What kind of people are best suited for roles that involve financial accounting?

The kind of people who are best suited for work that involves financial accounting may include those who are extroverted, sensing, thinking, and judging. It’s a personality type known as ESTJ. Being extroverted to learn financial accounting is helpful, as accountants often have to interface with CEOs, department heads, and business leaders, so communication skills are necessary. The sensing aspect means that you may learn to use all five senses to judge a situation well. A thinking person seeks to find logical explanations to problems and challenges, thus helping to make objective decisions. And having a judging aspect in your personality means that you may enjoy structure and organization in your life more than others. These personality characteristics have been shown to be in more than one-third of accountants.

How do I know if learning financial accounting is right for me?

You might know if learning financial accounting is right for you if you develop an interest in areas like budgets, numbers, and financial statements. If previous work has found you getting passionate about analyzing numbers in worksheets, journal entries, and general ledgers, then accounting might be an area to learn more about. Our world will always need people who can track financial figures, understand cash flows, and balance costs and expenses. Accounting may be right for you if you find yourself often seeking to manage the numbers in your home or business.

What are the benefits of taking an online Financial Accounting course?

Online Financial Accounting courses offer a convenient and flexible way to enhance your knowledge or learn new Financial Accounting skills. Choose from a wide range of Financial Accounting courses offered by top universities and industry leaders tailored to various skill levels.

What Financial Accounting courses are best for training and upskilling employees or the workforce?

When looking to enhance your workforce's skills in Financial Accounting, it's crucial to select a course that aligns with their current abilities and learning objectives. Our Skills Dashboard is an invaluable tool for identifying skill gaps and choosing the most appropriate course for effective upskilling. For a comprehensive understanding of how our courses can benefit your employees, explore the enterprise solutions we offer. Discover more about our tailored programs at Coursera for Business here .

Top Financial Accounting Courses - Learn Financial Accounting Online

Results for "financial accounting"

University of Pennsylvania
Introduction to Financial Accounting
Skills you'll gain: Financial Statements, Financial Statement Analysis, Financial Reporting, Financial Accounting, Balance Sheet, Accrual Accounting, Financial Analysis, Accounting, Cash Flows, Income Statement, Generally Accepted Accounting Principles (GAAP), Bookkeeping, Revenue Recognition, Depreciation
4.7
Rating, 4.7 out of 5 stars
8.3K reviews
Mixed · Course · 1 - 4 Weeks
University of Virginia
Financial Accounting Fundamentals
Skills you'll gain: Financial Statements, Financial Accounting, Balance Sheet, Financial Reporting, Financial Statement Analysis, Annual Reports, Accrual Accounting, Income Statement, Financial Analysis, Generally Accepted Accounting Principles (GAAP), Accounting Records, Cash Flows
4.8
Rating, 4.8 out of 5 stars
2.7K reviews
Beginner · Course · 1 - 3 Months
University of Illinois Urbana-Champaign
Financial Accounting: Foundations
Skills you'll gain: Revenue Recognition, Financial Statements, Accrual Accounting, Financial Accounting, Accounting Records, Income Statement, Accounting, Financial Reporting, Balance Sheet, Generally Accepted Accounting Principles (GAAP), Accounts Receivable, Inventory Accounting, Cash Flows
Build toward a degree
4.7
Rating, 4.7 out of 5 stars
4.5K reviews
Beginner · Course · 1 - 3 Months
University of Pennsylvania
More Introduction to Financial Accounting
Skills you'll gain: Financial Statements, Financial Statement Analysis, Working Capital, Financial Accounting, Income Statement, Financial Analysis, Balance Sheet, Accounting, Tax Planning, Inventory Accounting, Accounts Receivable, Tax, Equities, Cash Flows, Fixed Asset, Depreciation
4.8
Rating, 4.8 out of 5 stars
533 reviews
Mixed · Course · 1 - 3 Months
IESE Business School
Accounting: Principles of Financial Accounting
Skills you'll gain: Financial Statement Analysis, Financial Statements, Income Statement, Accounting, Cash Flows, Financial Accounting, Balance Sheet, Financial Analysis, Financial Reporting, Generally Accepted Accounting Principles (GAAP), Accrual Accounting
4.8
Rating, 4.8 out of 5 stars
3.2K reviews
Beginner · Course · 1 - 4 Weeks
Status: Free
Yale University
Financial Markets
Skills you'll gain: Investment Banking, Risk Management, Financial Market, Financial Regulation, Financial Services, Finance, Business Risk Management, Securities (Finance), Financial Policy, Capital Markets, Behavioral Economics, Banking, Corporate Finance, Governance, Insurance, Underwriting, Equities, Derivatives, Mortgage Loans, Decision Making
4.8
Rating, 4.8 out of 5 stars
30K reviews
Beginner · Course · 1 - 3 Months
Coursera Project Network
Create a Financial Statement using Microsoft Excel
Skills you'll gain: Financial Statements, Microsoft Excel, Excel Formulas, Balance Sheet, Financial Data, Income Statement, Bookkeeping, Data Entry, Financial Reporting, Financial Accounting
4.5
Rating, 4.5 out of 5 stars
686 reviews
Intermediate · Guided Project · Less Than 2 Hours
University of Illinois Urbana-Champaign
Formal Financial Accounting
Skills you'll gain: Bookkeeping, Technical Accounting, Accounting, Accounting Systems, Financial Accounting, General Ledger, Standard Accounting Practices, Financial Reporting, Balance Sheet, Accounts Receivable, Accounts Payable, Financial Statements
4.8
Rating, 4.8 out of 5 stars
375 reviews
Beginner · Course · 1 - 3 Months
University of Pennsylvania
Introduction to Finance and Accounting
Skills you'll gain: Financial Statements, Return On Investment, Financial Statement Analysis, Finance, Financial Reporting, Capital Budgeting, Financial Accounting, Financial Modeling, Working Capital, Balance Sheet, Accrual Accounting, Accounting, Cash Flows, Income Statement, Generally Accepted Accounting Principles (GAAP), Financial Analysis, Tax Planning, Equities, Financial Planning, Corporate Finance
4.6
Rating, 4.6 out of 5 stars
14K reviews
Beginner · Specialization · 3 - 6 Months
University of California, Irvine
Introduction to Financial Accounting: The Accounting Cycle
Skills you'll gain: Accounting Systems, Accounting, Month End Closing, Accounting Records, Bookkeeping, Financial Accounting, Financial Statements, General Accounting, General Ledger, Accrual Accounting, Financial Reporting, Generally Accepted Accounting Principles (GAAP), Income Statement, Balance Sheet, Project Closure, Revenue Recognition, Business Ethics, Reconciliation, Microsoft Excel, Journals
4.7
Rating, 4.7 out of 5 stars
642 reviews
Beginner · Specialization · 1 - 3 Months
University of Illinois Urbana-Champaign
Financial Accounting: Advanced Topics
Skills you'll gain: Cash Flows, Financial Accounting, Financial Statements, Fixed Asset, Financial Reporting, Financial Analysis, Depreciation, Balance Sheet, Equities, Accounting, Asset Management
Build toward a degree
4.7
Rating, 4.7 out of 5 stars
1.7K reviews
Intermediate · Course · 1 - 3 Months
Fundação Instituto de Administração
Financial Accounting
Skills you'll gain: Financial Statement Analysis, Financial Statements, Financial Analysis, Financial Accounting, Balance Sheet, Cash Flows, Income Statement, Working Capital, Financial Reporting, Business Metrics, Performance Analysis, Gross Profit, Analysis, Operating Expense, Accounts Payable and Receivable
Beginner · Course · 1 - 3 Months