Principles of Accounting
Individual Project One
Accounting has truly proven it’s self as an integral niche in society. Without personal bookkeeping you couldn’t track your bank accounts, how much you’re owed or owe to someone. You could not manage your taxes or even simple bills. These simple points alone show how much accounting has become important in the world. It drives business, government, and even the lowest levels of everyday life.
Accounting In Everyday Life
From the beginning of business there has been a need to keep track of the profits and bills paid out. Without tracking these basic factors of business there is no way to track the success you’re endeavor. The Accountant is responsible for ensure that proper records are kept, and the law regarding finance is followed. They also set up systems that pay employees, collect bills; this is one of the keystones of a successful business. They help figure the needed insurance versus the cost of a loss, manage cash shortages, and plan for financial difficulties (Financial Management, 2012). They offer analysis and advice for their clients on all matters related to their finances from basic bookkeeping to the needed insurance to cover monetary losses. They can work to ensure compliance with corporate, tax, and federal laws, to meet ensure that all timelines and record keeping procedures are followed (Susan S. Davis, 2012).
As with any profession there is a set of vocabulary and terms that go along with it. The term accounts receivable for example means simply the money to a business for its goods and services. Net income is the income left after all bills and taxes have been paid out. Debit and Credit are two heads of the opposite coin. Debit being an entry in the ledger with a positive impact for assets, while credit is just the opposite (A-Systems Corp., 2012).
Technology, as with every of facet of life has had a major impact on the field of...
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