The role of accounting in an organisation

Definition: Accounting is a process that record, analyze and store all of the transactions of a company in a specific period of time. The purpose is to provide insights and decision-making frameworks related to various internal and external users. Helping external investors understand a company's performance by comparing its two-year business. Accounting function: ·          Accounting has a very broad reach, which can be explained as follows:   -           Financial Accounting: It includes the preparation and interpretation of financial statements, as well as communication with account users. It's historical in nature because it keeps track of previous transactions. The production of the Profit and Loss Account and the Balance Sheet is the final step in financial accounting. It is primarily used to determine the net result for an accounting period as well as the financial situation as of a s...

  4. Accounting system Is a series of accounting processes with integrated controls. The aim of them is to record financial transactions and summarize them into a condensed form and create reports that can be utilized by managers to use the data for decision making. The role of technology in modern-day accounting In the age of technology, there are many ways to apply technology into accounting to make it easier to record financial transaction as well as storage information. Thereby creating a competitive advantage for the company, shortening the time spent on accounting activities as well as increasing accuracy. Instead of manual accounting, companies can use software which is a high tech program that helps companies reduce the time spent on accounting processes, the financial report will be easier to complete, all they needs transfer the transaction datas to the software. In Vietnam we have some big company which provide accounting software with preeminent, complete and ac...

  There are 3 main means of accounting contain financial accounting, management accounting tax accounting. Financial accounting: Is the process of recording, summarizing, and analyzing all of the historical transactions of a company and report them in the form of financial statement to the public. -It’s a main factor toward investors, creditors, government to evaluate, analyze the financial status of a company. From that, they can decide about investing, lending, -Every financial statement must take under the form of financial standards such as GAAP and IFRS and comply with its principles.   Management accounting: is the process of identifying, measuring, interpreting the information with a view to assisting managers in internal planning, make decisions and hedging risk. Unlike financial accounting that predominantly focus on publishing the company’s financial status to outsiders, management accounting destines to internal reporting in decision-making. Management...

  Accounting function:  In decision- facilitating decision that help manager: - Optimizing production: to determine the optimal sales for a company’s products and from that identify the breakeven point. - Identifying the bottlenecks: The negative impact created by bottlenecks in production and how they effect on the company’s revenue and profit. - Capital budgeting: In relation with making a decision about capital expenditures. - Inventory and product costing: To analyze about the necessary fees to uphold the inventory as well as cost of goods sold of a company. -Forecasting and analyzing trend: Predicting about the production cost and the appearance of unexpected variances.  Toward the Shareholders and employees: Managers need to figure out the value of a firm as present value of free cash flows with risk- adjusted rate for capital employed and profit to make sure that they are available for distributing a particular amount to shareholders under the form of...