What is accounting? Why it is important?
Accounting is also called the language of business. Thus it is being taught by universities which take them to analyse and assess the financial transactions taking place in the organisation. Thus, it is important to study the accounting subject and learn the fundamentals in form of accounts, cost, financial and economic point of view. Accounting is the only subject which leading decisions related to the administration of the financial resources. It is the responsibility of an accountant to maintain the records of all the business transactions of the company and to draw investors by preparing reports that provide a true and fair view of the organisational position and performance.
Some of the significant features of accounting as the language 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 and liabilities of the business and also present the complete picture of the current financial position of the company.
2. Stating profit or loss
Accounting helps the management of the organisation to analyse their performance for a particular period of time and identify whether they have had a net profit or loss during that time. This allows the organisations to analyse their operations and processes and identify and minimise the weaknesses while promoting the best practices.
3. Tax law abidance
The books of accounts of the organisation kept by the accountants allow the organisations to comply with the relevant laws and procedures. These records are used by the organisation as an evidence in the court of law and also help them in making decisions related to taxation and policy formulation.
4. Comparative analysis
The process of accounting allows the managers of the organisation to maintain a record of their transactions and financial position. These records are maintained in the specified format which makes it easy for the organisations to compare their performance with the competitors in the market.
The results of the books of account kept by the accountants allow the organisations to analyse the way in which they are headed and forecast the upcoming performance as well.
All these features makes accounting a significant part of business management and because of the numerous prospects and excellent professional growth available in this field, the study of accounting is becoming more and more popular among the students. Our knowledgeable and proficient accounts or accounting academic writing experts has worked on several and numerous type of projects to the students all over the world.
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