Student number: 100231152
Module code: 5AG501
Module Leader: Tapiwa Gande
The systematic reporting and analysis of fanatical transactions of the business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyse the financial performance of the business, and look at statistics such as net profit. In other words accounting is one of the important parts of business, which can significantly improve structure of business. For example if business is getting loose not profit it can show where business needs to save money and where business need to push money, to make more efficient work and gain profit. Why is accounting important for business?
There are lots of reasons why accounting is important, there for accountings is a language that needs to be understood clearly by people, but more important by business owner, and especially by accountant`s. If the figures which are given in forms accountant can not see by clear picture and can not tell what is going wrong or what is going good, than business needs to employ another accountant for that organization, who actually will see clear picture of figures and who will be able to say in what direction should to go organization, that what accountant should be. One of the reason is, if accountant will do wrong calculations and after wrong calculations he will predict that they can spend more than they actually hold it might impact organization to lethal ending or bring huge loose to business in general. Some reason why business accountings is important for organization: * Accounting is sometimes called by the “language of business”, due to those accountings deals with interpretation of a company’s operation and finances. Some companies had problems with accountings like General Motors and Chrysler and they needed to refresh their “language of business”. * Accounting is very important to any business, because it is the guiding force to sound management decisions. Which shows actual numbers of sales which hold company and it shows how high is demand on company’s product or service. * Accounting is also important; due to it can help to move business from one level to another. A good accounting system with the proper internal control will help to avoid areas of fraud in organization. Based on information above accounting should be prepared in really careful way and an accountant should see clear picture, what been business in past, what is business now, and what will have opportunities for business in future based on figures which gives accountings.
Swot analysis of Business Accounting
Strengths: With strong preparation and careful in accounting business can grow fast and secure. Clair view what business can do in future based on past and present. Fast reaction on problems which appeared and accounting can give a business few ways how to fast resolve those problems. Accounting can be prepared for precise time when company needs it. Easy understanding of position which company holds. Weaknesses: Mistakes in format of standards they might to confuse in understanding of position for people or business owner. Mistakes in calculations might to hurt organization till bankrupt. Incomprehension of figures which are given. Threats: Time is one of threats of accounting, because in big companies it will be hard to get all information fast. Standards might be as well as a threat, because there are business standard and government standard and if the worldwide company would not have same standard for accounting forms than to get information from figures which will be given can be even more complicated. Opportunities: New IT programs which will even easier and faster collect all the information which is needed to accountant. To make it easier to understand....