The Importance of Accounting

Topics: Decision making, Economics, Management Pages: 2 (646 words) Published: October 31, 2008
Accounting is an important means for an enterprise to implement efficient management, and the main basis to draft policies and plans. With the development of economy and the improvement of modern corporate system, the significance of accounting is becoming more and more obvious. This essay will discuss the main functions of accounting in business contest, thus prove that accounting is really essential and indispensable for an enterprise. Following this, it will explain why it is important for non-accounting professional and non-accounting students to have at least basic knowledge and understanding of accounting.

The main functions of accounting in business contest
There are many functions of accounting. The importance of accounting in business contest can be stated as follows: Firstly, accounting is an essential part of the whole enterprise management. There are many different departments in a company. The efficiency of the company’s management is not depended on the executives only, but the co-effect of all departments. Accounting is extensively, directly and continuously related to all departments and all business affairs in an enterprise. Therefore, accounting department is in the core position of the operation system. Only by making accounting one part of management, shall we improve the economic efficiency and expend our strength. Secondly, the information of accounting is the basis for decision making. The work of accounting is based on all kinds of information, such as National Economy and social development, and the result of their work should reflect the information. Generally speaking, the accuracy of the executives’ decision depends much on the accuracy of accounting information. The decision makers need accurate accounting information and overall analysis to ensure compatibility between production and sale, exploitation of the market, pricing, and investment of fund. Thirdly, accounting forecast is the foundation of business...
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