Accounting and Business

jennigoff33 By jennigoff33, 13th Sep 2011 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

What is business and why accounting is important to any business. This article is about accounting and finance accounting.

Accounting in the Business World

Businesses have owners and workers. Accounting helps to protect all parties involved in the business and the rest of society that are using the business in some way, shape, or form. Accounting is used to measure the finances of the company and is required to have knowledge on whom, and how to communicate the finances.
The main purposes of accounting are to find out certain things about a company or business by asking questions such as:
-how are we doing
-Which problem should be looked at first?
-What alternatives are available?
Accounting asks these questions in order to find out the problems in a company, address them in a certain order, and solve the problems.
Accounting will participate in financial management and corporate finance. Finances in general have to be accurate, reliable, timely, relevant, consistent, and clear. The financial management and accounting can help benefit in several things financially.
Financial management and accounting is used to address:
-the planning activities
-restructuring of a business
-negotiations with bankers
-evaluation of changes
-costs of environmental requirements
The finance department has control over:
-accounts payable to supplies
-accounts receivable from customers
-credit control
-control of cash and other payments
-cash receipts
-managers expenses
-petty cash
-banking relationships
Finance accounting works to build a stronger business and improve the overall performance. There are also many users of financial and accounting information. Their job also requires knowing who these people are and why they need this information.

moderator Mark Gordon Brown moderated this page.
If you have any complaints about this content, please let us know


author avatar Funom Makama
15th Oct 2011 (#)

Accounting and finance has always been serious business and you have given me great thoughts in this article. Thanks a lot for the share and it was really a useful information.

Reply to this comment

author avatar jennigoff33
20th Nov 2011 (#)

I try to include the facts. Thanks for your read.

Reply to this comment

Add a comment
Can't login?