• What are the objectives of accounting?

We explain what are the objectives of accounting in public and private areas, what is the general objective and other specific ones.

Accounting helps you make informed and responsible decisions.

What are the objectives of accounting?

The accounting is a technical discipline whose purpose is the measurement and analysis of the financial and equity situation of a business, organization or individual, both public and private, in such a way that it can make informed and responsible decisions, and can fairly render accounts before the laws and the society herself.

Therefore, the general objective in any form of accounting is none other than collecting said information economic of the organization or the individual, in a systematic, continuous, orderly and verifiable way, which serves as input for the processes of control and management.

The latter implies the contrast with the goals Y objectives raised, so accounting also provides relevant information to know if the organization is on the right track, at least from a budgetary and financial point of view.

But since accounting is an exercise with so many edges and complexities, it is also possible to identify different specific objectives, that is, smaller purposes or tasks that it must also fulfill, and that are those that allow it to fulfill the general purpose detailed above. These include the following:

• Keep an updated and continuous record on the economic operations carried out by the organization, both from income as of expenses.
• Provide at any time an updated balance of the organization's financial situation, as well as other specific financial information.
• Establish in monetary terms the heritage of the organization, through the review of its assets and Passives, so that its economic performance can be evaluated.
• Anticipate financial situations that the organization must or will face in the future, such as opportunities for business or crisis of financing.
• Respond in a reliable and verifiable manner to third parties in the organization or outside of it (from Condition, for example) with respect to audits and the legal requirements of the financial year.
• Establish the guidelines for the budget design of the organization.