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What is Accounting

Accounting tells you whether or not you’re making a profit, what your cash flow is, what are the current value of your company’s assets and liabilities, and which parts of your business are actually making money.

And our company looks after all accounting for our client whether it is corporate accounting or personal accounting. The different Importance of Accounting in parts of Business are described below-
  • Importance of Accounting in Planning.
  • Importance of Accounting in Organization.
  • Importance of Accounting for Motivation.
  • Importance of Accounting for Co-ordination.
  • Importance of Accounting in Control.
  • Accounting importance Media of Communication.
  • Importance of Accounting in Budgeting.
  • Importance of Accounting in Professional advice.
What are Accounting theories and concepts?

Accounting theory is a set of assumptions, frameworks, and methodologies used in the study and application of financial reporting principles. Accounting theory study involves both historical foundation and newly improvised accounting practices that are added to the regulatory framework.

What are the Accounting Principles?

Accounting principles are the rules and guidelines that companies must abide by when reporting financial data. The Financial Accounting Standards Board (FASB) issues a systematized set of accounting principles in the U.S. referred to as generally accepted accounting principles (GAAP).

The importance of Accounting is it helps in decision making, planning, and controlling processes. With the help of accounting there will be documents which will be factored in carrying out these processes.
Accounting is a continuous system that shows the financial position of a business entity by identifying the economic events, recording and analyzing them. Accounting provides with the economic entity’s financial position.
The definition of accounting is the process of systematically recording and managing financial accounts. Preparing a Profit and Loss Statement is an example of accounting. A system of debits and credits.
The different accounting types are Financial accounting, Cost accounting, , Management accounting, Tax accounting, auditing etc. The accounting chart organizes the finances into five major categories, called accounts: assets, liabilities, equity, revenue and expenses.