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Online business lessons in proper accounting methods, auditing, accounting information systems, taxation; revenue, COGS and equity; U.S. GAAP principles. Find Finance / Accounting Lessons WFH freelancers on January 21, 2025 who work remotely. Read less
Learning accounting with a focus on technical details, business tips, and utilizing available resources and software involves a multifaceted approach. Here's a breakdown of what you should focus on:
== Technical Knowledge: ==
Accounting Principles: GAAP (Generally Accepted Accounting Principles) in the U.S. or IFRS (International Financial Reporting Standards) for an international context. Understanding these frameworks will help in preparing financial statements correctly.
Accounting Cycle:
Learn the steps from recording transactions to closing the books, including journal entries, ledgers, trial balance, adjustments, financial statements, and closing entries.
Financial Statements:
Master the preparation and analysis of the Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Retained Earnings.
Taxation:
Basics of corporate, personal, and sales tax, understanding tax forms, and how to handle tax planning and compliance.
Cost Accounting:
Techniques like job costing, process costing, standard costing, and activity-based costing to manage and analyze costs.
Budgeting and Forecasting:
Skills in creating and analyzing budgets, variance analysis, and financial forecasting.
Auditing:
Basic principles of internal and external audits, including control systems and fraud detection.
Understanding Business Operations: How accounting integrates with different aspects of business like operations, HR, and marketing.
Decision Making: Using financial data to inform business decisions, like investment in capital, pricing strategies, or cost management.
Ethics in Accounting: Importance of ethical practices in financial reporting and decision-making.
Financial Management: Basics of managing cash flow, working capital, and understanding financial ratios for business health assessment.
Networking: Building relationships with other professionals in accounting or finance for insights and opportunities.
Continuous Learning: The accounting field is ever-evolving; staying updated with new regulations, standards, and technologies.
== Resources for Learning: ==
Books:
"Accounting for Dummies" by John A. Tracy for beginners.
"Financial Accounting" by Libby, Libby, and Short for a more academic approach.
"Intermediate Accounting" by Kieso, Weygandt, and Warfield for advanced topics.
Online Courses:
Coursera offers courses from universities like Wharton and Penn State.
Udemy for practical, often project-based learning.
LinkedIn Learning for quick, professional development courses.
Certifications:
CPA (Certified Public Accountant) for a broad, recognized credential.
CMA (Certified Management Accountant) for management accounting.
CFA (Chartered Financial Analyst) if leaning towards financial analysis.
Professional Bodies:
AICPA (American Institute of CPAs) for resources, networking, and continuing education.
IMA (Institute of Management Accountants) for management accounting insights.
Blogs & Websites: AccountingCoach.com for free tutorials and quizzes.
Investopedia for financial literacy and accounting concepts.
== Software and Tools: ==
Accounting Software:
QuickBooks: Popular for small to medium-sized businesses for its ease of use and comprehensive features including invoicing, payroll, and inventory management.
Xero: Cloud-based, known for its user-friendly interface and integration capabilities.
Sage: Offers solutions for businesses of all sizes, with strong reporting and inventory management.
FreshBooks: Particularly good for freelancers and small businesses, focusing on invoicing and time tracking.
== Spreadsheet Software: ==
Microsoft Excel: Critical for financial modeling, data analysis, and basic accounting tasks. Excel skills are indispensable in accounting.
ERP Systems:
SAP: For larger organizations or those looking to scale, offering comprehensive ERP solutions.
== Educational Tools: ==
MyLab Accounting by Pearson for interactive learning experiences with real business scenarios.
Online Resources:
AccountingTools for practical guides on various accounting procedures.
Additional Tips for Software Use:
Start with Free Trials: Many software providers offer free trials or demo accounts to get accustomed to their platforms.
Integration: Learn how accounting software can integrate with other business systems like CRM or inventory management for a holistic approach.
Automation: Understand how to automate routine tasks to increase efficiency.
Security: Be aware of data security practices, especially when dealing with sensitive financial information in cloud-based systems.
By combining theoretical knowledge with practical application through software and real-world business scenarios, you'll develop a robust understanding of accounting. Remember, the field requires continuous learning to keep pace with new standards, software updates, and business practices.
Here are 15 principles focused on learning the financial basics of stock trading and investing, enriched with business examples, technical knowledge, and insights from business science:
1. Understand the Basics of Finance
Principle: Before diving into trading or investing, grasp fundamental financial concepts like interest rates, inflation, and the time value of money.
Example: Realizing that inflation erodes purchasing power over time informs investment strategies, like preferring stocks over cash holdings in inflationary periods.
Technical Detail: The Fisher Equation (Nominal Interest Rate = Real Interest Rate + Expected Inflation Rate) provides a framework for understanding this relationship.
2. Risk Management
Principle: Understand that all investments carry risk; managing this risk is crucial.
Example: Diversifying a portfolio across different sectors to mitigate the risk of sector-specific downturns.
Technical Detail: Use the Capital Asset Pricing Model (CAPM) to assess expected returns based on risk, where Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate).
3. Asset Allocation
Principle: Allocation of assets across different classes (stocks, bonds, real estate, etc.) is key to balancing risk and reward.
Example: A young investor might have a higher allocation to stocks for growth, while someone nearing retirement might shift towards bonds for stability.
Technical Detail: Modern Portfolio Theory (MPT) emphasizes the importance of diversification to optimize returns for a given level of risk.
4. Fundamental Analysis
Principle: Evaluate a company's intrinsic value by analyzing financial statements.
Example: Warren Buffett's investment in Coca-Cola based on its strong brand, consistent earnings, and dividend history.
Technical Detail: Use ratios like P/E (Price to Earnings), P/B (Price to Book), and DCF (Discounted Cash Flow) valuation for assessing value.
5. Technical Analysis
Principle: Use historical price and volume data to predict future market behavior.
Example: Traders might use moving averages to decide when to enter or exit a position in Apple stock.
Technical Detail: Learn chart patterns (like head and shoulders, double tops/bottoms) and indicators (like RSI, MACD).
6. Market Efficiency
Principle: Markets process information quickly, but inefficiencies can still be exploited.
Example: Behavioral finance might explain why stocks like GameStop experienced extreme volatility due to social media influence rather than fundamentals.
Technical Detail: The Efficient Market Hypothesis suggests that it's challenging to outperform the market consistently without inside information.
7. Economic Indicators
Principle: Broader economic conditions influence stock markets; understanding key indicators helps in timing investments.
Example: An investor might increase stock holdings when leading indicators like PMI suggest economic expansion.
Technical Detail: Study the impact of GDP growth, unemployment rates, and consumer confidence on stock performance.
8. Psychology of Investing
Principle: Emotional biases can lead to poor investment decisions; awareness is key.
Example: Fear of missing out (FOMO) might lead to buying stocks at peak prices during a bubble.
Technical Detail: Concepts like prospect theory explain why losses feel more painful than equivalent gains.
9. Compounding
Principle: Understand the power of compounding in wealth creation over time.
Example: Reinvesting dividends in companies like Johnson & Johnson can lead to exponential growth in investment value.
Technical Detail: Use the compound interest formula: A = P(1 + r/n)^(nt), where A is the amount of money accumulated, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is time in years.
10. Liquidity
Principle: Liquidity affects how easily you can convert assets into cash without affecting the price.
Example: Investing in large-cap stocks like Microsoft ensures high liquidity for quick entry or exit.
Technical Detail: Bid-ask spreads and trading volume are key indicators of liquidity.
11. Cost Awareness
Principle: Fees and costs can significantly erode investment returns.
Example: Choosing low-cost index funds over actively managed mutual funds to reduce expense ratios.
Technical Detail: Understand the impact of transaction costs, management fees, and tax implications on net returns.
12. Portfolio Rebalancing
Principle: Regularly adjust your portfolio to maintain your desired asset allocation.
Example: If tech stocks have grown disproportionately in your portfolio, sell some to reinvest in underrepresented sectors.
Technical Detail: Use rebalancing strategies to control risk, often employing a calendar-based or threshold-based approach.
13. Dividend Investing
Principle: Dividends provide income and can signal a company's health.
Example: Investing in utilities like Duke Energy for their consistent dividend payouts.
Technical Detail: Analyze dividend yield, payout ratio, and the company's history of dividend growth.
14. Long-term vs. Short-term
Principle: Align your investment horizon with your financial goals; short-term trading differs fundamentally from long-term investing.
Example: Holding shares in Amazon for long-term growth versus day trading Tesla for quick profits.
Technical Detail: Long-term investors might use a buy-and-hold strategy, while short-term traders might focus on market volatility.
15. Continuous Learning
Principle: Stay informed about new financial instruments, regulations, and market trends.
Example: Keeping up with cryptocurrency trends might have led to early investment in Bitcoin.
Technical Detail: Engage with academic research, industry reports, and use tools like Bloomberg Terminal for real-time data and analytics.
Business Science in Investing:
Behavioral Economics: Helps understand how cognitive biases affect investor behavior.
Quantitative Analysis: Utilize statistical methods to back-test investment strategies or predict market movements.
Corporate Finance: Understand how companies finance themselves, which impacts their stock performance (e.g., debt vs. equity financing).
These principles, when combined with real-world examples and technical detail, provide a robust framework for anyone looking to delve into stock trading and investing. Mastering them involves not just theoretical knowledge but also practical application and continuous adaptation to market conditions.
An Online MBA (Master of Business Administration) offers a flexible, often self-paced way to gain advanced business knowledge and skills, tailored for professionals who wish to continue working while studying. Here's a detailed look at what's involved:
== Course Structure: ==
Core Curriculum:
Foundation Courses: Typically include subjects like:
Financial Accounting
Corporate Finance
Marketing Management
Organizational Behavior
Operations Management
Business Strategy
Economics for Managers
These courses provide a broad-based understanding of business operations and management principles.
Electives:
After completing core courses, students can often choose from a variety of electives based on their career interests or industry focus. Common specializations include:
Entrepreneurship
Finance
Marketing
Information Systems
International Business
Supply Chain Management
Business Analytics
Capstone or Integrative Projects:
Many programs culminate in a capstone project or a course that integrates learning across all MBA disciplines, often involving real-world business challenges.
Delivery Method:
Asynchronous: Students can watch lectures or participate in discussions at their convenience.
Synchronous: Live sessions via video conferencing for real-time interaction with professors and peers.
Hybrid: A mix of both, often with some mandatory live sessions for group work or seminars.
Duration:
Most programs are designed to be completed in 18 to 36 months, with part-time options allowing for even longer durations to accommodate working professionals.
Learning Platforms:
Schools use Learning Management Systems (LMS) like Blackboard, Canvas, or Moodle for course delivery, assignment submissions, and interaction.
What You Learn:
Leadership and Management: Skills to lead teams, manage organizations, and drive strategic initiatives.
Analytical Thinking: Enhanced ability to analyze data, markets, and business environments to make informed decisions.
Financial Acumen: Deep understanding of financial statements, investment, and capital management.
Marketing Strategy: How to develop and implement marketing strategies in various business contexts.
Global Business Perspective: Insights into international business practices, cultural nuances, and global economics.
Ethics and Corporate Responsibility: How to navigate ethical challenges and promote sustainable business practices.
Innovation and Entrepreneurship: Encouraging entrepreneurial thinking or how to innovate within existing organizations.
== Best Online Business Schools: ==
Here are some well-regarded institutions known for their online MBA programs, based on various rankings and reviews:
Indiana University (Kelley School of Business): Renowned for its interactive program with a strong focus on teamwork and real-world application.
University of North Carolina at Chapel Hill (Kenan-Flagler Business School): Emphasizes leadership development and offers a highly interactive online experience.
Carnegie Mellon University (Tepper School of Business): Known for its STEM-designated MBA with a strong emphasis on analytics.
University of Southern California (Marshall School of Business): Offers a flexible program with numerous specializations.
Babson College (F.W. Olin Graduate School of Business): Focused on entrepreneurship, even within an MBA context.
University of Florida (Warrington College of Business): Highly ranked for its affordability and quality of education.
Arizona State University (W.P. Carey School of Business): Offers a broad range of electives and a global business perspective.
=== Valuation of Work Experience in Applications: ===
Criteria for Evaluation:
Relevance: Experience that directly relates to the areas of study or specializations in the MBA program is highly valued.
Leadership: Demonstrated leadership roles or responsibilities.
Impact: Evidence of how your work has positively influenced your organization or industry.
Application Components:
Resume: Showcases your career progression and achievements.
Essays: Opportunity to explain how your experience will contribute to and benefit from the MBA program.
Letters of Recommendation: Often from supervisors or colleagues who can attest to your professional capabilities and potential.
Waivers and Flexibilities:
Many top programs offer GMAT/GRE waivers for candidates with significant managerial experience or advanced degrees, valuing real-world experience over test scores.
Interviews: Often used to assess how applicants' past experiences prepare them for the program's challenges and how they align with career goals.
Program-Specific Considerations:
Some programs, especially executive MBAs or those aimed at mid-career professionals, place even greater emphasis on work experience, sometimes requiring a minimum number of years (typically 5-10) in a management or professional role.
By balancing academic rigor with practical application, online MBAs from these respected institutions not only educate but also prepare students to leverage their existing experience for higher-level roles or career shifts. The value placed on work experience often reflects the program's understanding that seasoned professionals bring a wealth of knowledge and unique perspectives to the classroom, enriching the learning environment for all students.