Accounting system provides a consistent, systematic and unified method of accounting for all the financial transactions that occur during a particular financial year.
In general, accounting practices serve 2 main purposes:
1- To keep record
2- To give an accounting for all financial transactions
To summarise the above statement about accounting system, we can say:
Accounting system is the way of checking, balancing, and reconciling all the financial transactions of the year. This exercise is crucial for any company as it give an accurate picture of the company financial health. Profit and Loss report, balance sheet and cash flow statement are the fruits of accounting, which will help the individual and business owners make an informed decision about the company.
No comments:
Post a Comment