1. Analysis
purpose/decision making: All
our business and economically informed decision making are based on sound
analysis of financial statement which is a product of accounting information
system. Investors both current and potential base their investment analysis on
accounting information.
purpose/decision making: All
our business and economically informed decision making are based on sound
analysis of financial statement which is a product of accounting information
system. Investors both current and potential base their investment analysis on
accounting information.
2. Record
keeping: No economy
will stand well economically if records are not well kept and acted upon.
Accounting is one of the primary vehicles of record keeping. Even the
government uses the records of companies to make fiscal and monetary policies.
keeping: No economy
will stand well economically if records are not well kept and acted upon.
Accounting is one of the primary vehicles of record keeping. Even the
government uses the records of companies to make fiscal and monetary policies.
3. Prevention
of fraud and discovery of fraud:
Fraud can only be discovered and prevented in an environment where there is
good internal control in place , and a good internal control cannot be in place
where there is no form of keeping track of events.
of fraud and discovery of fraud:
Fraud can only be discovered and prevented in an environment where there is
good internal control in place , and a good internal control cannot be in place
where there is no form of keeping track of events.
4. Getting
of funds and loans:
You cannot get loan from financial institutions if you cannot present your
state of affairs in an acceptable manner. Accounting as a communication tool
obviously have generally accepted formats which financial institutions and
banks use as a basis for measuring the risk of a business.
of funds and loans:
You cannot get loan from financial institutions if you cannot present your
state of affairs in an acceptable manner. Accounting as a communication tool
obviously have generally accepted formats which financial institutions and
banks use as a basis for measuring the risk of a business.
5. Reputation
and credit building:
Reputation and business credit can be improved by the simple act of
establishing and operating sound accounting information system in an
organization.
and credit building:
Reputation and business credit can be improved by the simple act of
establishing and operating sound accounting information system in an
organization.
