The Importance Of Accounting

infoMay 25, 20214min00
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In the daily practice of companies or businesses, it is extremely important to have efficient control, which allows, on the one hand, to analyze and review accounting operations and, on the other, to give the necessary confidence to the owners or partners of the company, to customers and to creditors. 

This is where the importance of accounting lies for the following reasons:

Accounting presents the financial situation of the company under a realistic and technical approach, considering all the necessary elements for the presentation of each monetary value in each account that is presented in the Financial Statements. This generates the confidence necessary for owners, investors, creditors, clients and the general public to value the company in its internal actions, its productivity or capacity to generate income and profits, and its economic and social positioning in its operational actions. .

Accounting allows you to know the real costs of your products or of each of your internal processes where those costs are generated, which allows you to establish sales values ​​of the products, adjust your operating expenses, sales, labor, to achieve a more efficient administration of your resources and increase your level of productivity and competitiveness.

Accounting allows a review of the financial statements of the company (Audit), to know factors of correct application, generally accepted accounting principles, international accounting information standards, the correct use, application and management of human and economic resources of the company, thus allowing a correct internal control avoiding losses in the internal processes and the detection of possible frauds that could cause deficits in the company.

Accounting allows you to make plans for the future, to propose specific objectives and goals in order to increasingly develop the company, seeking to raise levels of competitiveness and obtaining higher profits, always seeking corporate social responsibility that today is fundamental for business development.

Accounting shows you the complete history of the company’s work in each of its activities carried out, and allows its owners to make plans for the future based on meeting their goals and objectives which is quite similar to what entrepreneurship course in Malaysia is.

That is why accounting from Widad University been defined as the science that teaches to analyze, classify, record and process the accounting operations carried out in the company by creating an information system that allows us to measure, control and report on the financial situation of the company, expressed in monetary terms.

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