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The Purpose of Accounting

explanatory Essay
632 words
632 words
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INTRODUCTION
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.

Purpose and Scope
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:

• What is accounting?
• How it can be measured in business?
• What is the use of accounting in business?

In the above cited the accounting of business is use to record and measure the size of the business, in terms of gains and loss on monthly, quarterly Semi- Annual and Annual basis. Use of the accounting in business, gives a clear review of net income, helps to plan budget of the business accordingly.

Procedures
Accounting in business, follows a particular process either in small scale business or large scale businesses with step by step process. Here is the straight forward procedure of accounting to know the organization current situation.

Accounting cycle is followed for each and every analyses of the business transactions.
SUB – TOPICS

Management Accountant
In Management, the accountant gives advices to the individuals and business people, how to manage their business. The account information is considered and some business decisions are taken in both financial and non-financial departments. Budgeting, tax filing, and financial statements. Other activities like involve in planning com...

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...e financial reports and statements are correct. This auditing will be conducted by auditing department of the organization, even may be done by an independent auditor who is not part of the organization, and sometimes public officials are elected. In case of unmatched consequences the organization need to give explanation on the misrepresentation of wrong statements. Auditors purpose is then to ensure that the misrepresentations are corrected, then maintain accurate, reliable financial documents and statements.

CONCLUSION
According to business, or any organization, Accounting plays a major role in developing and growth of the business. Financial standards of the organization expected as the complexities of business growth and expansion. Hence determining the implementation of the standards can vary according to the type of industry, business or organization.

In this essay, the author

  • Explains that the purpose of this document is to describe the nature, purpose, and scope of accounting. accounting involves in preparing financial documents of an entity by analyzing, verifying, reporting this records.
  • Explains the main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business.
  • Explains that the accounting of business is used to record and measure the size of the business, in terms of gains and losses on monthly, quarterly semi-annual and annual basis.
  • Explains that accounting in business follows a particular process either in small scale business or large scale businesses with step by step process.
  • Explains that in management, the accountant gives advices to individuals and business people, how to manage their business. account information is considered and some business decisions are taken in both financial and non-financial departments.
  • Explains that tax accounting is involved in filing the tax returns of the company individually, based on their income, and they need to pay the percentage accordingly to tax rules. taxation on business is another source of income to meet and satisfy the necessary needs.
  • Explains that financial accountant prepares monthly, quarterly, semi-annual, and annually financial reports to see the business development. these reports are useful for creditors to decide whether to invest in the company.
  • Explains that a budget analyst develops, executes and analyzes budgets for public, private, and nonprofit organizations.
  • Explains that auditors audit accounts and verify that all financial reports and statements are correct. in case of unmatched consequences, the organization needs to give explanation on the misrepresentations of wrong statements.
  • Explains that accounting plays a major role in developing and growth of the business. financial standards are expected as the complexities of business growth and expansion.
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