Introduction to Accounting
Everyone who has worked in a corporate setting at some point or another has had to go to accounting. They’re the folks who pay and send out the bills that keep the business running. They have more responsibilities than that, though. At times called to as “bean counters”, they also keep their eye on revenue, costs and losses. Unless you’re running your own business and serving as your own accountant, you would have no way of knowing just how profitable – or not – your business is without any type of accounting.
No matter what business you’re in, balancing a checkbook is still accounting. It’s part of life. Setting aside money for your allowance, spending it all at once – these are accounting principles.
What are some other businesses where accounting is essential? Well, farmers need to follow careful accounting processes. A lot of of them operate their farms year to year by applying for loans to plant the crops. If it is a good year, a profitable one, then they can afford to pay off their loan; if not,the loan might be rolled over to a new one, and accrue more interest charges.
all businesses and every individual needs to have some type of accounting system in their lives and business. If not, the finances can get away from them, they won’t know what they have spent, or whether they can expect a profit or a loss from their business. Staying on top of accounting, whether it’s for a multi-billion dollar business or for personal accounts is an essential activity on a daily basis if you’re smart. Not doing this can mean anything from a bad check or posting a loss to a company’s shareholders. Both situations can be equally devastating.
Accounting is pretty much information, and this information is published periodically in business as a profit and loss statement, or an income statement.
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