Accounting and Bookkeeping Bookkeeping involves the transactions (right and volume) that transfer money or money. While accounting from a perspective is comprehensive.
Accounting and Accounting
Accounting and Accounting (19659002) The regulation of the classification of knowledge in classification and analysis (principles, postulates, assumptions, conventions, concepts and rules) forms part of financial transactions in accounting. While the practice and art of accounting science are called bookkeepers. In order to meet the growing demands of various stakeholders (eg owners, managers, creditors, tax authorities, etc.), the various branches have been established. Financial Accounting The purpose of financial accounting is to determine the profit (loss or loss) of a business during the period and to present the financial position (balance sheet) at the end of the period by date
Cost Accounting  The purpose of cost accounting is to acquaint the business the cost of products or services produced by businesses. It helps the business to control costs by indicating avoidable losses and wastes. Management Accounting The purpose of management accounting is to provide the management with adequate information at the right time to allow for control of decisions and impacts. In this web foundation we are only dealing with financial accounts. The scope of the financial accounting described above can only be achieved by systematically accounting for financial transactions. Classified information should be graded, analyzed and presented in such a way that business results and financial status can be determined.
Accounting is an important and useful part of developing information to answer many questions from users of accounting information
(1) How bad or bad is the financial position of a business
2) Whether or not a business has resulted in a gain or loss  (5) Which of the existing products should be discontinued and terminated (19659002) (6) Do you need to buy an ingredient from the market or manufacture it ?
(8) What was the Existing Effect (19659002) (9) What are the likely results of new policy decisions on future earning power for business policy?
(10) Given the past performance of a business, how should a future plan provide the desired results?
The above-mentioned examples provide few examples of users of accounting information.
In addition, accounting is useful for the following reasons: –
(1) Increasing the number of businesses results in a large number of transactions, and not a business man is remembering everything.
(2) The accounting records prepared on the basis of uniform practices allow businesses to compare the results of one period to another period
(3) Tax authorities (both income tax and sales tax) are likely to believe in accounting (5) If an enterprise is sold as a continuation of a business, the assets of the various assets presented in the balance sheet will help to meet the requirements set out in the Accounting Act (19659002) at a reasonable price for the business.
The accounting benefits discussed in this section do not indicate that accounting is non-limiting
The following restrictions:
Financial Accounting allows alternative treatments Accounting is based on concepts and is based on "generally accepted principles", but more than one principle is applied to the handling of individual elements. This allows alternative treatments based on generally accepted principles. For example, one of the following methods can be used to evaluate an enterprise's closing stock: FIFO (First-in First-Out), LIFO (Last-in-First-out), Average Price, Standard Price, etc. But the results can not be compared
financial accounting does not provide timely information
No limitation is to use a high performance software application such as HiTech Financial Accenting, online and simultaneous accounts, where the balance is almost immediately available. However, this handicap has a handicap.
Financial Accounting aims to provide information in the form of statements (balance sheet and income statement) for a one-year period. So the information is at best historical, and only the post-mortem analysis is possible. Business often requires timely information, allowing management to plan and take corrective action. For example, if a business estimated that a sale should be $ 12,00,000 during the current year, it requires that sales in the first month of the year be 10,00,000 or less or more
financial accounting does not provide information for less than a year at a shorter interval. With the introduction of computer accounting, HiTech Financial Accounting, like HiTech Financial Accounting, displays the monthly income statement and balance sheet to overcome this limit. Financial accounting is influenced by personal judgments that respect the "objectivity convention" in accounting, but estimations of certain events need to be made, which require personal judgment. It is very difficult to wait for future estimates and objectivity. For example, estimating the amount of depreciation annually requires estimation of the use of fixed assets and the revenue disclosed by the accounting report can not be regarded as credible, but "approximation".
Financial Accounting ignores important non-monetary information
Financial accounting does not consider non-monetary transactions. For example, the degree of competition in business, innovation in business, employee loyalty and efficiency; changes in the value of money, etc. the important things in which business management is interested in, but accounting is not designed to take such matters into account. Thus any user of financial information will deprive the non-monetary vital information of course. In modern times, proper accounting software for MIS and CRM can be most useful in overcoming this limitation.
Financial Accounting Does Not Provide Detailed Analysis
Financial information is actually a summary of financial transactions over the year. Of course, it allows you to study the company's overall results in requiring information on the cost, revenue and profit of each product, but financial accounting does not provide such detailed information as a product. For example, if the business has achieved a full business result, it accounts for $ 5,00,000 during the accounting year and sells three products, namely gasoline. diesel and mobile oil and want to know the gains of each product. Financial accounting is unlikely to help you unless you use a computerized accounting system that can handle such complex queries. Numerous reports in computer accounting software such as HiTech Financial Accounting, which was explained by graphs and unique reports according to the needs of the business.
Financial Accounting has not given the current value of business
the position of the business as it is known as a "balance" at a given time. The assets in the balance sheet are presented on the basis of the "Continuing Entity Concept", so it is assumed that business life has a relatively longer life span and will continue to exist indefinitely, so asset values are "ongoing values". The "realized value" of each asset, if sold today, can not be recognized in the balance sheet
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