THE ROLE OF ACCOUNTING IN AN ORGANIZATION

Accounting helps in decision making by disclosing the relevant information to the interested parties. By this the managers finalize on the sort of information given to them for the decisions they must make. this is done through an internal financial statement to identify profit maximization opportunities for the company's controlled growth, financial accounting is crucial to any sort of financial decision making. The reason why the accounting information is vital in decision making process of an organization is to inform the higher-level managers in charge of making decisions for any potential risks and losses that they should be aware of and to prepare for any surplus or deficit for an organizations financial state. The accountants play an important role when it comes to making decisions as they understand the bigger picture from past and future benefit to the company, that is why performing accounting functions is important in decision making. Owners and Managers Once prepared ...

Branches of Accounting:  Financial Accounting: Controls the financial recordings and the transactions that took place in the firm through financial statements and provides it to the interested stakeholders for decision making process.  Management Accounting: Management accounting provides information for use by internal use, that is the management of the company to produce budgeting and forecasting, cost analysis and make decisions accordingly.    Cost Accounting: Treated as a secondary management accounting, it refers to the recording, presenting and analyzing of manufacturing costs, every cost that took place during the manufacturing process is recorded, standards and principles that help organizations to come up with budgets for controlling costs in a cost-effective manner (Neha de, 2022).  Skillsets:  Analytical skills: Accountants must consist of profound financial records to make sure that every attribute is up to date. Otherwise, their analysis ...

An accounting system consists of accounting processes with merged course of actions. The purpose of an accounting system is to record business transactions, summarize those transactions and produce a collection of data to create reports that can be used to analyze for decision making process of an organization. An accounting system includes the major functional areas of an organization, including the purchases and sales, payments, and receipts. The elements that make up an accounting system are assets, liabilities, capital, income, and expenses. These elements are used in a systematic manner to calculate the profits of a business. Technology has revolutionized the accounting industry. At the early stage of accounting, accountants had to use the calculators and had to do majority of the calculations manually. Due to this the accounting records were inaccurate and had many errors to rectify again and again. The introduction to the computer-based accounting technology impacted the acc...

  Accountants are professional individuals who are skilled in their field and can be trusted with ensuring data privacy of an organization. The accountancy profession is known for its quality service provided by the respected employees, these services add up with quality and consistency of its work as performing accounting function's is done literally everyday. This means that that accountants must oblige to ethical regulations and professional standards. Commencement of a business can challenges when the business plan isn’t going too well, the urge to compromise the numbers to make it seem smooth can be tough to resist. The problem for accountants is that they have a clear ethical and legal obligation to produce an accurate financial statement even if the business is going downhill. Failing to do so can get them in bigger trouble as civil or criminal liability which will shut their business down completely. As hiring accountant can give them a threat to their job security if the...