أخر الاخبار

What are the accounting Objectives?

What are the accounting Objectives?

Accounting is one of the basics that individuals have done since antiquity, as accounting began thousands of years ago, where transactions were recorded between individuals, while the emergence of accounting science goes back to Pacioli Misk, who worked on the use of what is known as bookkeeping in 1494 AD, to continue accounting until our time The current, but with keeping pace with technical developments and the provision of accounting programs that facilitate the work of accounting.
What are the accounting Objectives
What are the accounting Objectives

Because managers need accurate financial data in order to make the right decisions at the right time, businesses cannot dispense with accounting. The goal of accounting, despite the existence of many types of accounting, is to provide financial information to management, investors and creditors in order to measure business activity. The process of collecting financial information and reporting on its performance, financial position and business cash flows are one of the main objectives of accounting, as once this financial information is stored in the accounting records, it is reassembled and used according to the desired need, and the following is an explanation of many of the accounting objectives:

Money management and cost reduction

The importance of accounting is demonstrated by providing important information and accurate data related to the company’s assets, profits and cash position, as making the appropriate decision using these accounting data will affect the business to a large extent by ascertaining profit or loss in the business, for example, A company seeks To increase its profits either through the establishment of a new facility or by expanding the production line, so before the management makes a choice, the accountants analyze the financial statements and calculate the expected return for both options and present the results to the management in order to make a decision supported by financial expectations, which will contribute to the effective management of funds Avoid extra costs.

Saving time and effort

Accounting saves time and effort by verifying the success of the business according to the available financial data, and with technological developments, this process has become easier as individuals and business owners can enter their revenues and expenses in order to track their financial resources in an electronic way that reduces errors, all you need is to choose The accounting program that will save them time and effort necessary to keep track of your financial resources to avoid loss.

Ease of access to information

There are many parties that are interested in accounting information, such as creditors, tax collectors, investors, and other stakeholders that seek to obtain this information.

Get high reliability

Accounting is the language of business transactions, as due to the limitations of human memory, accounting aims to keep a complete and systematic record of all financial transactions, and this confirms the high reliability provided by accounting, where accountants record financial transactions on a daily basis so that they can refer to these records for use In preparing the necessary financial reports.

preparing financial reports

The collection of financial information related to financial performance, financial position and cash flows is one of the primary objectives of accounting, as using this data can efficiently manage the business and prepare the necessary financial reports, where it can prepare: income statements, cash flow statement, retained earnings statement and other financial reports that businesses need for several Objectives, such as: Determining the expected profit from selling products.

Accounting has many goals, such as managing money, reducing costs, saving time and effort, easy access to information, obtaining high reliability, and preparing financial reports. For accounting principles, you can read the following article: What is the principles of accounting?


Comments
No comments
Post a Comment



    Reading Mode :
    Font Size
    +
    16
    -
    lines height
    +
    2
    -