We explain the importance of accounting for various types of organizations and its main aspects.
What is the importance of accounting?
Accounting is a technical discipline that is dedicated to the analysis and measurement of the financial and equity situation of a company or organization, both public and private, or even an individual. Its purpose is to facilitate economic decision-making, that is, to be able to make them in an informed and responsible manner, also being accountable to the law and society.
In that sense, it is an indispensable area of knowledge in a world in which corporations, organizations and ventures constitute the bulk of the productive force. They are human constructions that are often so vast and complex that the information requires special treatment and becomes an essential asset for management and administration tasks. In fact, accounting usually goes hand in hand with the latter.
Thus, we can summarize the importance of accounting in the following aspects:
- accounting allows you to obtain detailed, reliable and verifiable information at any time of our patrimonial state. This means that without it, we would be blind to our financial situation, or we would have at most a superficial approximation of it. Logically, without knowing how much we have and how much we owe, it is impossible to make good administrative decisions.
- Good accounting It is a guarantee of accurate information to offer to third-party audits whether internal to the organization or external to it (such as the State), and thus comply with the requirements of the law in economic and financial matters.
- accounting Provides an in-depth look at the operation of the company although expressed in economic terms. It is, if you will, a financial x-ray of the organization, from which it is possible to determine how well or badly things have gone for us, or how close we have come to the goals we previously set for ourselves.
- Rigorous accounting is a guarantee of the continuity of the company, since Provides crucial information for budgeting and responsible asset management of it. It is not only a record of the movements carried out, but also a look into the future, which can anticipate opportunities, changes or difficulties.
Continue with: Objectives of accounting
References
- “Accounting” on Wikipedia.
- “The importance of accounting in the company” in Innovation in Vocational Training (IFP).
- “Importance of accounting” in Gerencie.com.
