The purpose and scope of accounting in complex operating environments


Accounting is the study of gathering, analyzing, and communicating financial data. The ultimate goal is to assist those who use this data in making more informed decisions. There's no use in producing financial data unless it can help people make better decisions.

The notion is sometimes made that accounting's sole objective is to prepare financial (accounting) reports on a regular basis. While it is true that accountants perform this type of job, these reports are made for a specific cause. As previously said, the accountant's ultimate goal is to provide users with financial information in order to improve the quality of their decisions (Mclaney and Atrill, 2002).

Finance, often known as financial management, exists to assist decision-makers, much like accounting. It is concerned with the methods by which a company's funds are raised and invested. This is the essence of what business is all about, a business exists to acquire cash from investors (both owners and lenders) and then to invest those monies in equipment, premises, inventories, and other assets in order to generate wealth. Because companies frequently raise and invest enormous sums of money over extended periods of time, the quality of their finance and investment decisions can have a significant impact on their success (Mclaney and Atrill, 2002).



(Mclaney and Atrill, 2002)



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