importance of accounting

Importance of Accounting in management

The accounting system is very important role in management.

If you want to run business you must need data, records, reports, accurate result of asset, liabilities profit. If you have not proper reasonable data you cannot make decision properly. Without proper genuine facts and figure you cannot take decision.

 Accounting also provides management regarding the financial position of the business. To make right decision in management needs proper statistical data. So, every organization needs accounting in business. Without accounting organization cannot run properly. if there is no accounting in business. Management cannot known about its asset, liabilities, profit, loss. Accounting is the main role to provide daily transaction in business . These transaction are record on journal books. Due to this easily found on about profit and loss of business.

Accounting prevents the misuse of assets in business. Its very important role to increase the profit of business.  Management and Accounting depends on each other. Without Accounting management can not run because they don’t know about their profit and loss account.

Types of accounting

• ·        Financial accounting
• ·        Managerial accounting
• ·        Cost accounting

·        Financial accounting relates to finance which is used in organization.

·        Managerial accounting relate to management which is use d in organization.

·        Cost accounting relate to cost of goods or manufacturing of products in organization.

    

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