Today, we see the word Accounting thrown around a lot. We hear a lot about it in our daily life. Before we go into the deeper aspects of this professional, there is the need to understand what it actually means. In the simplest terms, accounting is the process for summarizing, recording and analyzing a company’s financial transactions by Surrey Accountants. However, this does not encompass all that a professional accountant does. This brings us to a problem. Many people think, from reading the definition is that accounting is just one simple task or recording the financial transactions and cash of a company, but is so much more than that!
It shall be interesting to know that accounting as a profession has its inception thousands of years ago in ancient civilizations. Throughout the years, it is evolved and has become very sophisticated and effective. Accounting includes fields of work such as management accounting, financial accounting, and much more. Both of these form part of the large field called business accounting. Financial accounting is another matter, or rather a separate discipline. It focuses on the statutory reporting on companies while the discipline of management accounting is all about reporting the information for a company’ internal use.
What is the importance of business accounting?
Accounting, as you know, is a service activity. In other words, it is a service. This is because it provides or offers a quantitative or measurable range of financial information for the stakeholders for whom the services are provided. The stakeholders can be many, such as suppliers, investors, government, management, financiers, regulators and much more. As you may know by know, business accounting helps considerably in the development of long and short-term business decisions. These business decisions aid in the sustained growth of the company. It also helps the company to grow in the market, stay afloat during adverse times, go to new markets and much more. Business accounting involves profit and loss account, balance sheet and cash flow statement.
Every company wants and actually needs the best services, especially if so vital as accounting. Thus, for the best for your company, call the professional Surrey Accountants at Sandhu & Company.