One of the most important parts of setting up and running a business is the Accounts department. Most self-employed people either do it themselves or employ someone to do the business accounts. In this article we cover some of the basic outlines involved in the accounting profession.
You will realise the vital part that a good a good account has in the running of a business. As a business grows it becomes apparent the importance of knowing the various types of accounting strategies required to run a successful business. When people first start their businesses, book-keeping and keeping basic records is all that is needed.
They record the day-to-day running expenses of the company. The sales made together with the expenses incurred making use of invoices, payment receipts, bank cheques and other general paperwork where transactions take place.
OK, So What Is Accounting All About?
A lot of people look at accounting as number crunching, something done by people who are 'good at numbers', they feel that it has nothing to do with them someone else can deal with that side of the business. There is often some amount of confusion when dealing with records and book-keeping.
But of course Accounting is a lot wider issue than merely just books. 'Accounting is a system in a business that shows in minute detail the total number of transactions that business has, detailing each aspect in the form of reports which are then in-turn passed on to the people ultimately responsible for the running of the enterprise.' Financial Statements are presented in the form of reports stating the exact financial position that an individual or organization.
Who Acts Upon This Accounting Information?
*Investors and Creditors,
*Non-Profit Organizations and
*Other Users including employees, consumer groups, labour unions and the general public.