Essay On Importance Of Accounting

Importance of Accounting to Business Organizations
Accounting is the lifeblood of a business. And all types of business have basic information that needs to be recorded in other to get a particular job done. Accounting determine whether the business is to continue operating or not. It is so safe to conclude that accounting may be a development that is here to remain. Accounting ought to create deliberate efforts to keep track of business financial spending, change their organization motives and to adapt to changes during their surroundings. Accounting skills are very practical, and can be applied to many areas of your life. As mentioned, accounting skills can be applied when analyzing course grades, managing expenses, or making smart financial

It is impossible to run an organization or to make sound investment decisions without accurate, timely financial information; it’s the accounting professional who prepares this information. More important, accounting gives the meaning of financial information to individuals or organizations to help them use financial information to deal with business problems. Getting numbers is the easy part of accounting, particularly since the introduction of the computer. The hard part is analyzing, interpreting, and reporting

Companies need to invest in order to grow, but the cost of an investment changes over time. In addition, companies have the ability to change how they deal with investments in order to pay less in taxes. Accounting help to be able to analyze this data and determine better ways of reporting revenue, spending and investment. Best of all, accounting skills are well sought after by employers. Practically every organization requires an accountant with accounting skills to help keep track of the day to day financial activities. In fact, according to the Bureau of Labor Statistics (2012), the projected employment growth rate for accountants and auditors between years 2010 and 2020 is 16%, while the average growth rate for all occupations is only 14%. Therefore, employment prospects are bright for those with the required accounting