26 Sep

Importance of Accounting in the Company

The accounting in the company is a necessary process that serves to know the patrimonial states of the same one . It is practically impossible to have a reasonable management of an organization without knowing exactly their numbers and circumstances, their relationships between assets and assets. This circumstance is true both for a large company and for a micro enterprise , although it is true that in the second case there may be a very rudimentary record. The accounting in the company is carried out conscientiously by specialists and is fundamental to evaluate the decisions that in the future will be taken. In professional terms, the double entry system continues to be used.

When it comes to making decisions of an economic nature, it is extremely important to have a good follow up that accounts for the situation in which an organization or a person is. This circumstance led to the development of different ways of tracking different types of scenarios over time. In effect, each town had a way to record their harvests, their consumption, etc. The development of a unit of account was enormously important in this sense, because it facilitated the records that were carried out. Accounting as we understand it today was a refinement of this whole process, refinement that came in the Middle Ages and that was definitely imposed in the Renaissance. Of course, there were also enormous changes in this system, but the principles of it remain.

A company, on the other hand, has the purpose of obtaining a return. To achieve this objective, the prices of goods and services in the market are observed and attempts are made to produce them at a lower cost. The difference between these prices and costs will be the so-called profitability of the company. However, despite the fact that these considerations are easy to understand, the truth is that a thorough monitoring of these values ​​is required, a follow-up that can only be carried out by means of a detailed record of all the transactions , of all the decisions made. take and that involve exit and entry of money. This is how accounting is established as a fundamental tool in a company to carry out its objectives.

Surely with the passage of time it will come to modify the accounting system in force. Indeed, the changes in society can lead to evaluate new forms of registration that reflect them faithfully, the accounting in the company will surely improve in this regard.

Accounting

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  • Admin, posted on 01 Oct, 2018

    I completely agree, the correct management of finances in any company is a factor that guarantees the success or failure

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