| |OCTOBER 20169Consultants Reviewanalyses are not possible if we do not record accounts for the business.Predictions about future: Plans about the future can be two ways. One is long term vision and other can be near term plan like Budgets, Mid-term plans etc. We need to have long term vision to grow business from small to big. Now to have this vision about business, one needs to have a solid base so that vision can be created with reasonable reality of achievement. So, we need accounting in business because in the absence of the accounting, it is almost impossible to predict the future growth of the business and milestones. In addition to long term visions, organizations are also supposed to work on short term goals Annual Budgets/Mid Term Plans etc. Thus, all the enterprises need to have clear future projections about revenue, operating cost and assets that would be required to serve future demands.Remaining Responsible: Enterprises are considered to be corporate citizen in any country. As like any citizen, businesses do enjoy their rights in their area of operations. However, their rights to operate in any area do come with the responsibility. Every business is supposed to be compliant to various regulations and requirement of the area of operation. So we need right accounting in enterprises to ensure that they are compliant. As mentioned earlier weak accounting or wrong accounting can lead to be business/enterprises being non-compliant and can lead to sudden death of the organization. With the global civilization, real world is becoming smaller and smaller so being non-compliant in one region can lead to have impact on business globally. Apart from being regulatory responsible, organizations also need to be socially responsible and that can happen with the accounting in place. Being responsible can also lead to growth in business and customers also prefer to deal with responsible organizations.In summary Accounting is often called "the language of business." Why? Because it communicates so much of the information that owners, managers, and investors need to evaluate a company's financial performance. These people are all stakeholders in the business, which is to say they're interested in its activities because they're affected by them. In fact, the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information. Obviously, you wouldn't try to run an organization or make investment decisions without accurate and timely financial information, and it's the accountant who prepares this information. Apart from being regulatory responsible, organizations also need to be socially responsible and that can happen with the accounting in place
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