Importance of accounting for business and industries

Importance of accounting for business and industries

Importance of accounting for business and industries

 

Finance today has become a very important topic of business. Various job opportunities are available in this section of the business. Today a major group of students are looking forward to business and accounting as their aim in life. They either aspire to become an established businessman or they want to experiment something in finance and accounts. Thus, accounting today has become one of the most important subjects. People are opting for accounts and thus it has also resulted in the increasing scope of this subject. Before talking about what job opportunities and fields are available in this subject, let us first understand what accounting basically means and how your small business can benefit from Accountant Sydney?

 

Accounting also known as book-keeping is simply the process of keeping financial accounts of a company, bank, firm or any business enterprise etc. Account is a major subject whenever business or related topics are considered and looked upon

It refers to the process of summarizing, analyzing, and reporting all the transactions belonging to a business enterprise. Accounting is considered as a key-function of every business. Where there is a business going on, an accounting of that particular business is a must. A business without a fine CPA accounting is just like a human body without a soul. Accounting is that instrument in the hands of a businessman that accelerates the growth of his business. A business maintaining its fine and precise accounts is always considered ahead of the business that doesn’t maintain a proper account. Accounting is, therefore, considered as the soul of a business since it provides the minutest of details about the financial position of that business. Accounting is an information science that collects and manipulates all the financial data of business. Every business, company, firm, bank, etc., keeps its financial account in order to calculate all the profits and losses, the investments and returns it has made and achieved. Accounting is also necessary, as a result, of paying the income tax to the government. The income tax department always looks into the accounts of a business enterprise and then dictates the tax to be paid by lodging the tax return Sydney. Any person who keeps an account of a business is called as an accountant. The accountant thus keeps all the information regarding the accounts of the company and maintains it at equal intervals of time. He is responsible for determining all the transactions related to a business like overall wealth of an organization, its liquidity, profits and losses, etc. the work of the accountants is, therefore, responsible in the marketing activities, budgets, re-investments, profits and research and development of the organization.

 

Accounting is one of the oldest and the respected jobs of the world. It has been looked forward since early time and now the scope in this field is increasing day by day. Students are opting for accounts as a major subject for study and are looking forward to accounting and similar jobs of financing. Accounting has been divided into various fields as financial accounting, management accounting and auditing and taxing.

 

The Financial accounting is part of the accounts that deal with reporting of an organization’s financial information. It also includes the preparation of the financial statements of the company. The recording of such financial transactions is known as book-keeping. The financial accounting includes preparation of statements for its external users such as the investors, suppliers or regulators. Today, many people look upon financial accounting as a successful profession.

 

Management accounting handles the future oriented reports of the organization. It thus focuses on the analysis, measurement and the reporting of information that helps the managers of an organization in making decisions and further in fulfilling the goals of that organization. The said reports include both financial as well as nonfinancial information in it.

 

Auditing and taxing are simply the verifications of assertions made by the people in regard to pay off in an organization. It aims to express or disclaim an opinion so formed on the financial statements. The auditor audits the account of the enterprise to remove all the discrepancies on the part of the accountants  and thus rectifies the mistakes so made.

 

Thus, these fields provided by the accounting also enhance the scope of accounting. Accounting is also associated somewhere with banking. The banks also tend to maintain their accounts in a very proper and precise manner. Thus, accounting simply leaves no field untouched. It covers all the aspects of the business and help in maintaining proper business accounts, which accelerate the growth of the business. Accounting is thus very important in any and every business organization.

 

 

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