What is accounting? Why it is important?
What is accounting? Why it is important?
Accounting is also called the language of business. Thus itis being taught by universities which take them to analyse and assess thefinancial transactions taking place in the organisation. Thus, it is importantto study the accounting subject and learn the fundamentals in form of accounts,cost, financial and economic point of view. Accounting is the only subjectwhich leading decisions related to the administration of the financialresources. It is the responsibility of an accountant to maintain the records ofall the business transactions of the company and to draw investors by preparingreports that provide a true and fair view of the organisational position andperformance.
Some of the significant features of accounting as thelanguage of business are:
1. Presenting the financial position
By drafting all the financial reports of the organisation,the accountants highlight the details about the valuation of the Assets andliabilities of the business and also present the complete picture of thecurrent financial position of the company.
2. Stating profit or loss
Accounting helps the management of the organisation toanalyse their performance for a particular period of time and identify whetherthey have had a net profit or loss during that time. This allows theorganisations to analyse their operations and processes and identify andminimise the weaknesses while promoting the best practices.
3. Tax law abidance
The books of accounts of the organisation kept by theaccountants allow the organisations to comply with the relevant laws andprocedures. These records are used by the organisation as an evidence in thecourt of law and also help them in making decisions related to taxation andpolicy formulation.
4. Comparative analysis
The process of accounting allows the managers of theorganisation to maintain a record of their transactions and financial position.These records are maintained in the specified format which makes it easy forthe organisations to compare their performance with the competitors in themarket.
5. Forecasting
The results of the books of account kept by the accountantsallow the organisations to analyse the way in which they are headed andforecast the upcoming performance as well.
All these features makes accounting a significant part ofbusiness management and because of the numerous prospects and excellentprofessional growth available in this field, the study of accounting isbecoming more and more popular among the students. Our knowledgeable andproficient accounts or accounting academic writing experts has worked onseveral and numerous type of projects to the students all over the world.
