There hasn’t been a moment in accounting where you have perfectly balanced the balance sheet, or written off the debts without accruals or prepayments. Every single one of us has encountered various problems that have led to frustration. From learning the language of business to qualifying technical topics such as journal entries, trial balances, and financial statements, the subject holds several challenges for students. So if you are a high school student or tackling financial accounting at University, it’s normal to hit certain obstacles.
In this blog, we will be taking a look at the 10 common accounting problems and solutions faced by students, offering them practical tips and tools to help them overcome them, along with the anxiety and stress that comes with it. So if you have searched for an accounting question solver or ever felt desperate for help, well, you are in the right place then! Since accounting isn’t restricted to junior level, it targets all niches, from lower level to all the way to MBA helping you polish your skill for that easy target.
1. Difficulty Understanding Debits and Credits
The Problem:
One of the very basic accounting problems students face is understanding how debits and credits work; we agree, it’s very confusing at first. Many mistakenly believe that debit always means a plus and credit means minus, or vice versa. That’s a first misunderstanding that can cause errors throughout all stages of accountancy, from journal entries to final financial statements.
The Solution:
Now you must be thinking, how do I get it right? What do I do to have a better understanding? Well, the first thing you need to do is start by categorizing the different types of account and how they act, for much easy structure, remember this:
- Assets and Expenses increase with debits and decrease with credits.
- Liabilities, Revenues, and owners ’ equity increase with credits and decrease with debits.
2. Struggling with Journal Entries
The Problem:
Problem-solving in accounting is not a piece of cake; it needs a lot of concepts that you need to have in your mind with a clear understanding of how they work. Students usually get confused when translating real-life transactions or textbook problems into journal entries. This struggle arises because journal entries need more understanding of what happened practically and economically, and how to represent that using accounting rules.
The Solution:
Start by asking some simple and basic questions:
- Which accounts are involved?
- Are they increasing or decreasing?
- What type of accounts are they (asset, liability, etc.)?
3. Trouble Preparing the Trial Balance
The Problem:
Even after making journal entries correct, many students struggle to post them into ledgers accurately and compile a proper trial balance. This usually leads to mismatched totals and wasted hours, trying to find what went wrong or what that one expense was that you didn’t look at.
Easy Solution:
Financial accounting problems and it’s solutions are never ending, either you overlooked something or you weren’t mentally present when solving a problem, here’s how you can prepare an accurate trial balance:
- Ensure each journal entry is posted accurately to the correct ledger account.
- Update balances consistently as you go.
- Add up all debit and credit balances at the end and compare the totals.
If the two columns don’t match, go back and:
- Check that each transaction has been posted correctly.
- Review if any figures were added or subtracted incorrectly.
- Use a checklist to verify that all entries are included.
Use various practice exercise to develop fluency in this process; it takes time, but you will understand.
4. Errors in Financial Statement Preparation
The Problem:
Students often face issues when preparing the three main elements of accounting: financial statement, income statement, balance sheet, and cash flow statement. Omitting one transaction leads to wrong figures, which is quite a common issue that is faced by a student.
The Solution:
The key here is to understand the structure and logic of each statement:
- Income Statement: Measures performance over time. Focuses on sales/revenues and expenses to calculate net income.
- Balance Sheet: A snapshot of a company’s financial position at a point in time. Shows assets, liabilities, and equity.
- Cash Flow Statement: Tracks cash inflows and outflows from operations, investing, and financing activities.
Make use of templates and fill in the values as you go. Always cross-reference your trial balance and journal entries to ensure consistency. Tools like Excel or Google Sheets help organize large numbers and perform automatic calculations.
5. Not Understanding the Accounting Cycle
Issue faced:
To put this in perspective, accounting isn’t just a series of isolated tasks; it follows a cycle, a major and complete cycle. Which means many students usually treat journal entries, adjusting entries, and statements as separate exercises without seeing how they are linked.
The Solution:
Understand the full 8-step accounting cycle:
- Identify and analyze transactions
- Record in journals
- Post to ledger accounts
- Prepare an unadjusted trial balance
- Adjust entries at period end
- Prepare an adjusted trial balance
- Create financial statements
- Close temporary accounts
Once you see how each step flows into the next, you’ll understand the ‘big picture’ and how each task has a purpose.
6. Lack of Time Management During Exams
The Problem:
Accounting examination usually needs more complex and multi-part problems under a specific window. Students are required to not to spend too much time on one question and fail to complete the rest despite knowing the solution for the rest.
The Solution:
Being able to manage your time is as important as knowing what material you are bringing to the examination room, so before you begin, here’s what you need to know:
- Skim through the paper and allocate time based on the marks per question.
- Start with questions you’re confident about to build momentum.
- Leave longer or tougher questions for the second half.
Protip: Practicing full mock exams under timed conditions helps build stamina and speed. Try setting a timer and simulating a test environment to reduce exam-day anxiety.
7. Confusing Similar-Sounding Terms
The Problem:
Accounting uses a bunch of terminologies that may sound similar but have totally different meaning. For example:
- Revenue (sales) vs. Income (Profit)
- Cost (Cost of goods sold) vs. Expense (Loan, electricity, rent, and etc.)
- Capital (Business owned finance) vs. Equity (Company’s book value)
Getting confused can lead to various errors in both, theoretical answers as well as numerical case studies.
The Solution:
To tackle this problem, you can use your own glossary of commonly confused terms. Instead of just copying definitions, write down:
- What each term means with an added example.
- How it differs from the similar one with an added example.
- An example or visual aid for reference and more clarity.
8. Inability to Analyze Transactions Critically
The Problem:
Some students completely rely on memorized formulas or steps and then struggle when presented with an unfair transaction or word problems. Here’s what you can do:
The Solution:
Develop the habit of transaction analysis:
- Break down each situation: What actually happened? What changed?
- Ask: Did money come in or go out? Did a debt increase or decrease?
- Identify the account types and apply the appropriate debit/credit logic.
9. Overreliance on Calculators or Software
The Problem:
The technology can assist in complex calculations, overly depending can weaken your core skills that you learnt. Students who are habituated to using calculators frequently may not develop an understanding of how the numbers can come together.
The Solution:
Focus on the understanding of what goes behind these mathematical numbers, try solving problems manually:
- Do T-account postings by hand.
- Work through journal entries with pen and paper before entering them into software.
- Use spreadsheets only after mastering manual methods.
This ensures that you develop strong foundational skills that won’t falter if the tech fails or you’re tested without tools.
10. Fear of Making Mistakes
The Problem:
One fear that you need to get your mind out of is the fear of making big mistakes. Accounting surely does feel rigid because everything must come balance. Making students more hesitant or anxious, but hey! Mistakes are a crucial part of learning. Don’t fear them; fearing one mistake can ruin an entire answer! Even if it does, remember it’s a part of the learning process. It happens, at least, you would know where to work on for better results next time.
The Solution:
Reframe mistakes as learning opportunities. Instead of avoiding practice questions, embrace them:
- Make errors early and often during your study phase so you don’t repeat them during exams.
- Use detailed solution keys to understand where you went wrong.
- Talk through your mistakes with peers or tutors to reinforce the correct approach.
Remember, every seasoned accountant once fumbled their way through journal entries and balance sheets. It’s part of the journey.
Becoming Confident in Accounting
Remember, accounting can be structured, but it doesn’t have to feel limiting. It’s a subject that rewards persistence, logical and critical thinking, and a continuous practice. Every concept you learn lasts, and with time, even the most confusing parts start making sense.
So if you are preparing yourself for an upcoming examination or just practising to enhance your skills with number games, this is the right moment to do so! Because at Assessment Help UK, we make sure we facilitate you the best! And students who are looking for something more referral oriented, we highly recommend you to go about MHRA referring guide here!
Stick with it, ask questions, learn from your mistakes, and make use of every resource available. You’ve got this, now with that, we helped you with you common accounting problems and solutions got your concepts much clearer than ever.
