Why Is Accounting Important?
Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions. There are three key financial statements generated by your records. The income statement provides you with information about the profit and loss .The balance sheet gives you a clear picture on the financial position of your business on a particular date. The cash flow statement is a bridge between the income statement and balance sheet and reports the cash generated and spent during a specific period of time. It is critical you keep your financial records clean and up to date if you want to keep your business afloat. Here are just a few of the reasons why it is important for your business, big or small!
It Helps in Evaluating the Performance of Business
Your financial records reflect the results of operations as well as the financial position of your small business or corporation. I other words, they help you understand what's going on with your business financially. Not only will clean and up to date record help you keep track of expenses, gross margin, and possible debt, but it will help you compare your current data with the previous accounting records and allocate your budget appropriately.
It Ensures Statutory Compliance
Budgeting and future projections can make or break a business, and your financial records will play a crucial role when it comes to it. Business trends and projections are based on historical financial data to keep your operations profitable. This financial data is most appropriate when provided by well-structured accounting processes.
It Helps to Create Budget and Future Projections
Budgeting and future projections can make or break a business, and your financial records will play a crucial role when it comes to it. Business trends and projections are based on historical financial data to keep your operations profitable. This financial data is most appropriate when provided by well-structured accounting processes.
It Helps in Filing Financial Statements
Businesses are required to file their financial statements with the Registrar of Companies. Listed entities are required to file them with stock exchanges, as well as for direct and indirect tax filing purposes. Needless to say, accounting plays a critical role in all these scenario
Job Opportunities
After completing BCom job opportunities are plenty. Career options after BCom include Accountant, Account Executive, Business Executive, Financial Analyst, Tax Consultant, Tax Consultant, Accounts Manager, Business Consultant, Finance Manager, Financial Analyst, Chartered Accountant, Company Secretary, Chartered Financial Analyst etc
Accounting is a subject that is fun but requires a lot of concentration, patience and hard work. We at Guiders education provide the right environment for our students to be good accounting professionals.
