Objectives of Accounting and accounting basics:
The main objectives of accounting are:
Place in methodologically the financial operations that occur in a business.
Provide clear and accurate information about the financial position of a company at a given time and the results of operations in a defined period.
Analyze and interpret the results of the activity of a company.
Used to prepare budgets of various kinds on future business activity.
It presents accurate, measurable and analyzable data that allow management to make decisions at any time, establish accountability, define policies, delegate authority, and so on.
Information that offers accounting.
Accounting can provide us different types of information within which we can highlight:
- Internal information
- External information
Insider information is based on information that is provided to departments or individuals in the company, among which are:
* The Directors management to make decisions should analyze financial statements, the results obtained, whether won or lost in the period analyzed.
* Owners or Shareholders Shareholders or owners require all fully know, performance or invested.* Employees of companies Workers require the accounting information provided by the financial statements, since according to the Labour Act expected that a percentage of the value obtained by liquid finalized each financial year by the company should be distributed among the workers.
Information External is the information that is provided to a third party.
* The State The state requires information from each of the companies as it is these that contribute to the main entrance of the same, the main income is made up of taxes and to achieve this accounting issued by the financial statements are necessary.
* Banks and Financial Institutions Companies to apply for a bank loan will be the presentation of the information issued by accounting through financial statements have needed.
* Suppliers Providers to provide a line of credit requires the information provided by financial statements to determine the ability to pay them.
Areas of Accounting.
Accounting field is large so be mentioned in some of the areas which can be applied:
General Accounting: The purpose of the fact record and synthesize the operations of a business and get results.
Cost Accounting: try to collect, classify, record, distribute and report on the costs incurred in the processing of goods. Neuner defines cost accounting as: "An extended phase of the General Accounting industrial or commercial entity which quickly provides management data related to the costs of producing or selling each item or provide a particular service"
Specialized Accounting: General Accounting is the same, using the same principles, methods and procedures, but adapted to a specific economic area, such as: Accounting Agriculture, Petroleum Accounting, Accounting Livestock, Tax Accounting, etc..
Auditing: A sufficiently large examination by a Certified Public Accountant, having to verify and ensure that the financial statements of a company, for a given time, fairly represent the financial condition and results of operations, and further that these financial statements were prepared in accordance with generally accepted accounting principles.
- Internal Audit
- External Audit
Accounting Systems: All public accountant of a company must establish the accounting system, ie, plan and operate the way in which the information is going to generate within the company. You must set the chart of accounts, books to be used, forms, procedures and controls that serve to account for and control the assets, liabilities, revenues, expenses and results of business operations.
