What is the importance of accounting?

The accounting is a discipline that deals with studying and measuring the finances and assets that companies have, seeks to know effectively the state of the accounts, in order to make better use of economic resources, better use of money, plan investments, purchases and other operations, which will allow companies to be competitive, profitable and achieve goals and objectives proposed. From here, the great importance of accounting throughout the management process.

Basic accounting

It refers to what is fundamental and is the basis on which an event is sustained. As a science, it deals with the fundamental analysis and measurement of the assets of individuals or companies.

Accountants, as those professionals dedicated exclusively to the performance of this trade are called, are responsible for recording, in accounting documents intended for this purpose, all the economic activities carried out by a company or a person, fixing in these the income that resulted from the commercial activity, and in the same way the expenses in which incurred.

The purpose of these financial statements is to know the accounting from the activities and account for the financial situation in which said person or company is found. They are also fundamental instruments in making economic decisions.

These concepts involve companies of all kinds and sizes, both small and medium-sized companies (known as SMEs) as well as large multinationals, obeying financial reasons, in order to achieve the adequate cost effectiveness.

There are different types or branches of accounting, which will enrich the general development of the company through timely financial information, either for internal or external purposes.

Importance of accounting

Accounting is an economic discipline that has served man since time immemorial, it allows a clear and precise order of activities, resources, expenses, money. Therefore, the use of this is vital to manage in the best possible way the financial and economic life of a company, work or even a family business.

The accounting task is very specific and although anyone can carry it out, it is important to use professionals who know what they are doing and avoid mistakes. Especially in the payment of taxes, taxes and the preparation of balance sheets and budgets that allow us to know what to invest in and help control profits.

Due to this great importance, the employer will require the implementation of a registration system that facilitates this work and that allows him to:

• Know the situation of the company and the businesses that are carried out, at all times.
• Have timely information to facilitate decision-making.
• Keep track of previous management, to facilitate planning of funds for next year.

In this sense, the company must also ensure these resources with a team of accountants who are in charge and develop this task and can even work in conjunction with the directive providing recommendations and actions to follow, continue.

Accounting missions

• Adequate knowledge of the assets of the company. It is necessary to know and clearly establish the set of assets and rights available to him. company for the development of its activities, in the same way handle the obligations to which it must do front.
• The timely registration of each of the operations carried out by the company in the course of its annual activities.
• The calculation and estimation of the results of all economic activity in the most exact way possible, to be clear about the benefit obtained, which is why the employer acts.

This discipline is an element of great importance in the personal, business, government, etc. since it allows knowing the financial and economic reality in the face of activities, trends, evolution and what can be achieved, this thanks to the fact that it not only allows us to know the past and the present, but also predicts the future.

Here lies the true importance of accounting, which allows to have absolute knowledge and control of the company, facilitates decision-making with precision and with knowledge in advance of what could happen.

Many times it is seen simply as a legal obligation, something that must be carried because there is no other option and they ignore how important and useful it is. It is for the correct economic development, so much so that a company without proper accounting work is destined for bankruptcy or failure.

To conclude, it can be said that accounting is much more than accounting books, some financial statements or keeping track of expenses. It is a complete tool that allows you to correctly manage each and every one of the resources available to the company, not giving it importance is simply throwing away the possibility of detecting errors and improving, of being more productive and making the most of and protecting the heritage. On the other hand, it is essential to obtain legal information.

For whom is accounting important?

Commonly accountants, owners, managers, traders, stockbrokers, bankers, investors, anyone involved in the world of businesses, uses accounting concepts and terms to describe and present the resources and activities of the business, whether large, medium or large. little.

However, despite its progress in the field of business, the accounting function is vital in all units of society.

Often times, a person needs to provide accounting information to buy a car or house, receive a scholarship or a credit card. The government, cities, communities, schools, hospitals, businesses, need to use accounting as a basis for controlling resources and measuring achievement.

All citizens, whatever their activity, need certain accounting knowledge that allows you to act smart and face the challenges imposed by society and the economy current. Since even in everyday life, there is a need to keep some control with expenses and income, to meet with the obligations acquired, monthly payments, savings and to be able to cover eventual expenses without being in trouble economic.