CAFM is not about memorising everything. It is about understanding the logic behind what you study.
Many students make the mistake of memorising accounting entries, formulas, and questions without understanding the concepts behind them. This may help with familiar questions, but what happens when the examiner asks something new?
A better approach is to build your preparation around conceptual clarity and application.
Here are two concepts that can completely change the way you study CAFM.
1. In Accounting, Don’t Memorise the Entry. Understand WHY It Happens.
When studying Accounting, the first thing you should focus on is conceptual clarity.
Don’t just remember:
“This is the entry.”
Instead, ask yourself:
- Why is this entry passed?
- Why is this account debited?
- Why is this account credited?
- What is actually happening in the transaction?
If you understand the logic behind an entry, you become less dependent on memorisation.
Having Trouble With the Basics? Go Back to Class 11.
If you are struggling with Journal, go back and strengthen your basic Accounting concepts.
If you are confused about Ledger, clear the fundamentals first.
If Debit and Credit are not clear, don’t simply memorise more entries. Understand the logic behind them.
There is no point directly jumping into advanced questions when your foundation is not strong.
Don’t Prepare Only the Questions You Have Seen
You may memorise 100 Accounting questions and remember all 100.
But ask yourself:
What if the examiner gives you the 101st question?
If the question is presented differently, will you still be able to solve it?
That is where conceptual clarity matters.
When you understand why an entry is passed, you can apply the same logic to a new situation.
Don’t memorise Accounting. Understand why it works.
When you learn something from the basics, you don’t just remember it for the examination—you are more likely to retain and apply it in the long term.
2. In FM, Don’t Just Memorise Formulas. Understand the FLOW.
Financial Management requires a different kind of approach.
One of the biggest mistakes students make is memorising formulas without understanding how or why they work.
They remember the formula, but not the logic behind it.
Instead of simply asking:
“What is the formula?”
Ask:
- Why does this formula work?
- How is it derived?
- What does each component represent?
- Where should I use it?
Don’t Spend All Your Time on Long Calculations
Another common mistake is focusing only on lengthy calculations.
You need to understand the calculation properly, but you should also learn how to solve efficiently and save time in the examination.
Once your concepts are clear, understand:
- The calculation process
- Time-saving techniques
- Shortcuts
- Efficient ways of approaching practical questions
The objective is not just to calculate.
The objective is to calculate accurately while managing your examination time.
Don’t Randomly Jump Between FM Chapters
A lot of students select a few important chapters and start studying them randomly.
For example, you may directly start Capital Budgeting because it is an important chapter.
But ask yourself:
If you don’t know how to calculate Discount Factor, how will you solve NPV?
And if your Time Value of Money is not clear, how will you understand the logic behind discounted cash flows?
This is why FM should be approached as a flow of connected concepts.
Think in Terms of a Flow
For example:
Time Value of Money → Discount Factor → NPV → Capital Budgeting
First understand the basic concept.
Then understand the calculation.
Then learn how to solve it efficiently.
Then move towards the connected application.
Instead of randomly jumping from one chapter to another, understand what knowledge you need before moving ahead.
The Question You Should Ask Before Starting Any Chapter
Don’t only ask:
“Which chapter is important?”
Ask:
“Which concept should I understand before I start this chapter?”
This small change in your approach can make FM much easier.
When concepts are connected, you don’t have to depend entirely on memorisation. You understand why the calculation is being done, where it is used, and how it connects with the next concept.
The Right Approach to Studying CAFM
For Accounting, think:
Concept → Logic → Entry → Application → Practice → Revision
For FM, think:
Concept → Formula Logic → Calculation → Efficiency → Application → Practice
The common factor is understanding.
Whether you are studying an accounting entry or an FM formula, don’t just ask:
“What do I have to remember?”
Ask:
“Why does this work?”
That is what helps you handle questions you haven’t seen before.
Final Takeaway
CAFM doesn’t become difficult simply because there are many formulas, entries, or calculations.
It becomes difficult when we try to memorise without understanding.
So, before starting your next chapter, ask yourself:
“Do I actually understand this concept, or am I just remembering the answer?”
Because the examiner may not give you the exact question you practised.
But if your concepts are clear, you can approach a new question with confidence.
Don’t Just Study CAFM. Understand It.