We explain the importance of accounting for various types of organizations and its main aspects.
What is the importance of accounting?
The accounting is a technical discipline that is dedicated to analysis and the measurement of the financial and equity situation of a business or organization, both public and private, or even of an individual. Its purpose is to facilitate decision making economic, that is, to be able to do them in an informed and responsible manner, rendering due accounts, in addition, to the law and the society.
In this sense, it is an area of essential knowledge in a world in which corporations, organizations and enterprises constitute the bulk of the productive force. They are human constructions often so vast and complex that the information requires special treatments and becomes an essential asset for management tasks and management. In fact, accounting often goes hand in hand with the latter.
Thus, we can summarize the importance of accounting in the following aspects:
- The accounting allows to obtain detailed, reliable and verifiable information of our patrimonial state at any time. This means that without it, we would be blind to our financial situation, or have at most a superficial approximation to it. Logically, without knowing how much we have and how much we owe, it is impossible to make good administrative decisions.
- Good accounting is a guarantee of accurate information to be offered to the audit third parties, whether internal to the organization or external to it (such as the Condition), and thus comply with the provisions of the law in economic and financial matters.
- Accounting provides an in-depth look at the operation of the company, although expressed in economic terms. It is, if you will, a financial X-ray of the organization, from which it is possible to determine how well or badly we have done, or how close we have come to goals that we previously traced.
- A rigorous accounting is a guarantee of the continuity of the company, since it provides crucial information for the preparation of budgets and for the responsible management of its assets. It is not only a record of the movements carried out, but also a look to the future, which can anticipate opportunities, changes or difficulties.