| |OCTOBER 20168Consultants Reviewids ask lot of questions in their quest to grow and understand the world and we should promote this habit among kids for their overall growth. I'm not an exception to this and my son used to ask me many questions during his growing age. One of the questions that he asked during his childhood has stuck to me till now and the question was about my job. During his early days he did not understand about accounting and he asked me what I do in office from morning to evening? To answer his question in simple terms, I told him that I take care of finances and do manage accounts at office. To this he simply smiled and got back to me, what is so great in that, Mom also does that for our house and why do companies need professionals like us to do that and further for that why do we spend so much time in office and paid high for that job which is quite simple. So it is very pertinent to address this question that what is accounting and why business need accounting ?Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizable finance departments with dozens of employees' at large companies. Now let's see why we need accounting in business. All of us know that lot of businesses fail due to the simple fact that either they are not able to do proper accounting or they are not able to understand the accounting. Examples of businesses failing due to improper accounting are many like Enron, Satyam etc. So we need accounting in enterprises due to the following:To measure current progress: It is famously said that what is measured/monitored is done. So in business also we need to have continuous monitoring to understand the direction in which business is moving, which part of business is doing well, which geography is better than other and vice versa. It is the accountants who report to management the same by their various analysis and diagnostic reports. Now these diagnostics or IN MY OPINIONWhy do Entrepreneurs Need Accounting for Their Businesses?Incorporated in 1997, Canon India Pvt. Ltd. is a subsidiary of Canon Singapore Pte.Ltd, with offices spread across 14 cities in India with an employee strength of over a 1000 people and markets a comprehensive range of over 200 sophisticated and contemporary digital imaging products in the country. Chartered Accountant with 25 years of work experience, Anuj Aggarwal brings in expertises from various sectors related to taxation and corporate planning.KAnuj Aggarwal, Vice President and CFO, Canon India
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