Accounting

Accounting

Importance of accounting:

Accounting is a methodical record of operations of a company, and its importance stems from the following considerations:

The entrepreneur invests in business values and needs to control his movement is justified, and stocks at all times be due.

Not only are invested in the business eigenvalues but also foreign values, record credit purchases orloans, and therefore is required to know the details of these commitments.

In recording transactions and the results thereof, it becomes history, whose study can be healthy lessons employer to regulate his future actions.

The taxes are based on capital investment, therefore accounting is required to serve as lead source and test data in compliance with tax obligations.

In summary,accounting is important because it serves the employer: to control the movement of its securities; know the results of its operations, its position with respect to creditors, and serve at all times of test through their trade performance.

According to their field of use is divided into:

Public Accounting

Principles, practices and procedures associated with the accounts of local government units,state and national, that means the records kept by public sector companies internally, an example would be the secretaries of state or government agency, such as national accounts, which summarizes all activities of the country, including your income and expenses.

Most people working in public accounting are certified public accountants. The certificate of public accountants licensed to practiceis granted by the state from rigorous examinations and evidence of practical experience.

The basic services offered by certified public accounting firms including audit, tax, management consulting services and services to small businesses.

Private Accounting

In contrast to the CPA, who provides its service to many clients in private industry the counter is an employee of one company. Thehead of the accounting department of a small or medium company usually called controller, in recognition of the fact that one of the main uses of accounting information is to help control business operations. The controller directs the work of employees in the accounting department is part of the senior management team responsible for managing the business, setting your goals and ensurecompliance.

Accountants in private companies large and small must record transactions and prepare periodic financial statements from accounting records.

Within the general accounting area has developed a variety of specialized phases of accounting. Among the most important can be described as follows:

Cost Accounting

The field of accounting that deals with the classification, accounting,distribution, collection and reporting of current and prospective costs. They are included in the field of cost accounting: the design and operation of systems and procedures, costs, identification of costs by departments, functions, responsibilities, activities, products, territories, periods and other units, likewise, the expected future costs or estimated costs or desired standard, as well ashistorical cost, the cost comparisons of different periods; of actual costs with estimated costs, budgeted or standard cost and alternatives.

The cost accountant classifies costs according to patterns of behavior, activities and processes which relate to products that match and other categories, depending on the type of measurement you want. Given this information, the estimated cost accountant,reports and analyzes the cost to perform various functions such as operation of a process, the manufacture of a product and special projects. It also prepares reports to assist in the administration to draw up plans and choose between courses of action which can be chosen.

In general the costs are met in the accounts serve three general purposes:

Provide reports on utility costs to measure and...