what is accounting? definition, purpose and benefits of accounting

What is accounting? Accounting science is generally known as science related to calculations, but the analyses carried out are not simple calculations. It takes a wise and observant mind to be an expert in this one field of science.

For those with thin brains, becoming an accountant is the dream of most people. Still, to become an expert in the field of accounting, of course, requires qualified knowledge because wrong calculations will have fatal consequences for the financial statements made.

Most accountants have above-average skills because they must have careful accuracy. This makes an accountant expensive if working in bona fide companies because they are the source of relevant and appropriate reports created so that they can make a reference company to take steps to make decisions forward.

What is Accounting?

Many experts define the meaning of accounting elaboration, and some of these experts certainly have expertise in their fields to become an academic reference so that what they know about accounting can be shared with the public. Here are some definitions of accounting.

According to Sunyanto (1999), Accounting is

Defining accounting is collecting, recording, classifying and identifying many financial transactions to obtain interpretation results for making decisions.

Soemarsono SR (2004)

Accounting is the process of identifying and measuring data to report financial information to produce firm and clear judgments and decisions for those who use the information.

According to Suparwoto, accounting is

a technique for managing and managing transactions to provide reports in the form of information to companies internally and externally, such as investors, creditors, labour unions, etc.

According to S. Munawir Accounting is

A process of recording the classification and summary of a financial event appropriately to produce financial statements that can be interpreted.

According to Paul Grady

Accounting is part of the science of organizational functions in a systematic, authentic way of taking notes. Process and analyze all financial transactions to make reports as information needed by management to make decisions.

Accounting purposes

Objectives The purpose of accounting, in general, is to record and collect financial statement information in and out of cash flows in a company to be used as a decision by management.

In addition, there are also accounting objectives in general, specifically qualitative accounting, that you should know. The following are the accounting objectives of the three categories.

Specific Accounting Objectives

the objective is to obtain relevant financial information under the company's financial entry and exit under accounting principles and rules. The financial statements technically include the balance sheet, profit and loss of the company and others related to the company.

General Accounting Objectives

addition to the above specific objectives, there are also general accounting objectives which we summarize in the following points.

Explain various company financial information.
Provide various information about changes in various economic sources of the company.
Provide a financial picture of the company's economic resources, which include assets, debt, and capital.
To find out the profit and loss of a company. Provide information on assets and liabilities within the company.

Objectives of Qualitative Accounting

Provide appropriate and relevant financial data information. Provide reports that are easily understood by related parties who need the info.

We are presenting transaction information in real time as quickly as possible. Provide information under the principles of GAAP (Generally Accepted Accounting Principles) and produce data that has been tested for validity and correctness.

Benefits of Accounting

Accounting has benefits for a company, from these benefits will certainly return to positive results for the management of the company. Here are the benefits of accounting.

As a material for the company's financial evaluation.
As a means of financial information for related parties in need.
As financial evidence that the company is run under regulations.
As a reference for the company, whether the business is running healthily or not.

Of the various benefits, the most important use is keeping the company running according to the rules. This aims to prevent the company from going bankrupt due to financial recording errors.

This is a review blog.ilmusrkipsi.com regarding the definition of accounting. Of course, from various academic fields, there are many things related to accounting for you to learn more about accounting.

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