There are three main functional areas in accounting, which must be taken into account in today's accounting. Three Financial, Cost and Management Accounting
The first area, namely financial settlement, is primarily useful for periodic knowledge of business results; for example, for a year. This will determine the future action process in the long run. Financial Accounting Economically Handles Money as a factor in production
Cost and management accounting is an asset that enables management to make day-to-day decisions. Cost and management accounting is not useful for your own benefit. These two functions help management in business and other important factors in running a business. Key factors may be supply, supply, competition, raw material, logistics, etc. Availability.
The second area, namely the cost accounting, aims to establish the value of direct costs and indirect costs incurred in production. From this value, management can make an informed decision on improving production performance. From an economic point of view, cost accounting is a measure of economic performance. This information clearly indicates to the farmer the economic performance of the enterprise's production resources.
The reimbursement also helps the sales manager to determine the prices. But since cost accounting is a measure of economic performance, it can not be considered as the absolute exact basis for determining prices. This is because selling prices are more of an economic decision. It should not be mentioned here that prices are fundamentally dependent on market factors. Prices are more dependent on demand, supply and competition and less cost. For example, the lack of high demand and competition would mean that businesses can charge higher prices for their products, far above costs.
The third area, namely management accounting, is closely related to cost accounting. Although it comes from accounting, management accounting plays a bigger role in managerial decisions. Measured the economic performance of a business as a whole as opposed to the business environment of business. This function of accounting is aimed at widening the pooling of financial and cost information.
Finally, management accounting plays an important role in helping and advise management in making important business decisions. Management is aware of the economic consequences and consequences of their decisions. From an economic point of view, it is a thorough study of money as an economic resource while at the same time treating it as a measure of economic performance. This allows the farmer to make it an economic factor, eg. the FDI Rate
Thus, it can be seen that the accounting has three different areas that are equally important. With the introduction of computer bookkeeping, management has become very easy to track accounting information about your fingers. Financial accounting software allows you to prepare your financial statements and various cost and MIS statements almost instantly with a click of a button. Now only the tedious part of accounting is data entry. Financial managers must ensure that meaningful data is entered into the system to provide meaningful information. Appropriate categorization should be performed and key errors can be avoided in all respects, providing the enterprise with accurate financial information.
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