The clear objective of the accountant would be to capture all monetary transactions of a monetary nature in order to determine whether the company has gained or lost a financial year. The financial situation of the company as at a given time, so it is understandable for accounting journals and accountants. We are talking about the traditional accounting goal. But after the time, accounting becomes increasingly important as tax authorities have to demand income tax and turnover tax returns, state regulation, investors, owners and management. Thus, the significant operation of the recording, classification and aggregation of events can be properly defined, which include financial transactions and / or financial events for interpretation purposes.
Systematic notes for later references:
Accounting is an accounting practice that shows how to keep track of financial transactions. It deals with customers and suppliers of the company, where many business transactions take place daily. It is possible to remember every transaction we need for our future reference. Especially if this is done by credit sales, there is a need for regular bookkeeping. The owner wants to know how much time it will be for whom, from time to time.
Understanding the Company's Financial Position:
Every trader is seeking a business profit. Thus, systematic recording of factual and financial information makes it easier for owners to understand where the financial year is at the end of the financial year, what their net profits are and if the credit line is wide, then tighten the ropes. Furthermore, you can understand the nature of your business growth by comparing the accounting records for the two consecutive years.
Some people enjoy tax exemption but no one can avoid taxes. The main source of income for the government is the tax payment of business dealers and corporate companies. You will need to pay a percentage tax on your sales profits. The accounting records kept by you contain facts that are taken into account by the tax authorities as the basis for the assessment
Good evidence in court:
Evidence of his or her own and private disputes with the customer or the supplier, his records and with credentials, if it is authentic and valid, will be a solid proof in court.
Accounting also answers these questions:
- How well did the various divisions of business lines perform well?
- What is the most successful product line?
- What products should be produced and what should be stopped to avoid losses?
- ] Is the cost of production reasonable or excessive?
- Do you need to review policy decisions to improve profitability?
- What future business plans will be for management after the existing results?
- ] Overall, the company is in the right direction for productivity, profitability and growth
Accounting is not just about fixing and classifying, and interesting elements are analysis and interpretation , to the development of the whole organism
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