Purpose of accounting for an
organization.
In this assignment I’ll be describing the purpose of
accounting for an organization, I’ll be going through the
important section of account and I’ll be explaining each of
them and provide an example where it is needed.
The purpose of accounting is to record
financial transaction, planned or
actual and the use of the figures is to
produce a financial information. I’ll be
going through record transactions,
control, monitor activity, measurement
of financial performance and
management of business. I’ll be
explaining them each thoroughly
throughout each slide with examples.
, Record transactions
The purpose of this section is to keep business
records accurately and up to date as this is
important for a smooth operation for the
business. The owner of the business or a
bookkeeper must keep a record of all of the
money inflowing in to the business (from sales)
and all of the money going out, such as
expenses. If the business fails to do this job then
they will encounter a lot of problems such as it
would not find itself chasing payments, forgetting
to pay bills or even more seriously with having a
problem with HM Revenue and Customs (HMRC).
Furthermore If the business does not record its
transaction correctly, it cannot report its financial
performance accurately and therefore tax
payments may be wrong.
organization.
In this assignment I’ll be describing the purpose of
accounting for an organization, I’ll be going through the
important section of account and I’ll be explaining each of
them and provide an example where it is needed.
The purpose of accounting is to record
financial transaction, planned or
actual and the use of the figures is to
produce a financial information. I’ll be
going through record transactions,
control, monitor activity, measurement
of financial performance and
management of business. I’ll be
explaining them each thoroughly
throughout each slide with examples.
, Record transactions
The purpose of this section is to keep business
records accurately and up to date as this is
important for a smooth operation for the
business. The owner of the business or a
bookkeeper must keep a record of all of the
money inflowing in to the business (from sales)
and all of the money going out, such as
expenses. If the business fails to do this job then
they will encounter a lot of problems such as it
would not find itself chasing payments, forgetting
to pay bills or even more seriously with having a
problem with HM Revenue and Customs (HMRC).
Furthermore If the business does not record its
transaction correctly, it cannot report its financial
performance accurately and therefore tax
payments may be wrong.
