It is not necessary to know accounting thoroughly. But it is critically important to understand its logic.
To understand the essence of business more deeply, it is necessary to understand what actually shows balance sheet.
And in order to understand the balance, you need to understand where its balances come from. And the balances are formed as a result of accounting transactions, which, in turn, arise from specific business processes and household needs. operations.
Therefore, when they try to explain to a person the essence of accounting transactions through airplanes, what, where and when applies to Debit, Credit, what their turnover is, etc., without linking all this to the balance and balances of his accounts, then such a person can at most qualify for the role of an ordinary clerk with a stamp: materials accountant, sales accountant, salary accountant, services accountant, etc.
That is, a person who knows his accounting area, but can be practically disconnected from the reality of the business.
It is very important for an economist to be able to compare any business process, any management decision, any change in a factor with how it ultimately affects the financial condition of a business on its balance sheet and capital.
And here we are not even talking about economics yet, but this is already a huge step towards understanding its foundation. Because there is more than just an accounting transaction behind every figure in the balance sheet. There is a specific business action behind it.
Therefore, the planning of any business should be based on its financial and economic modeling, which, in fact, is as close as possible to the same pattern as accounting.
Because any decision made should be based on an understanding of how this decision will change the balance of the business.
This, among other things, gives an understanding of the nature of the formation of that "air" in the real sector, why the book value of a business does not always reflect its real value.
