Tuesday 10 November 2015

understanding of accounting, financial accounting, management accounting as well as the importance of accounting

Definition of "Accounting",
"Financial Accounting" and
"Managerial accounting"

Definition of accounting, financial accounting and management accounting is indeed very different, it can be said that the definition of a cycle or chains are interconnected with each other that can not be separated. Financial accounting in the hospital in order to finance a hospital to run smoothly then the cycle is to be run properly.

As the initial process, must first know the definition of accounting, financial accounting and management accounting properly, so that will help achieve a satisfactory understanding.

1. Definition of accounting Accounting is the process of recording, calculating, identifying, measuring and release economic information in an agency / company so that it is possible
the judgments and decisions clearly and firmly for those who use the information. Effective use of accounting would be one way of doing effective financial management.

2. Definition of financial accounting Financial accounting is accounting which mainly produces information in the form of financial statements aimed at external parties, such as taxes, shareholders, and others. Examples of financial statements are: 1. Balance Sheet 2. Income Statement 3. Statement of changes in capital

3. Definition of management accounting Management accounting is the financial statements prepared primarily to generate useful information for effective decision-making by management for planning and controlling operations and perhitunagn costs.
Examples:
1. Revenue per service activities
2. Report of accounts receivable, cash reports and so on

"At first glance understanding of accounting, keunangan accounting and management accounting, may be
useful. "


THE IMPORTANCE OF ACCOUNTING

Throughout the economy of using money (Money) as a means of payment, the role of accounting is always crucial because the accounting record business events m \ a financial nature. Merchandise sales, payroll, and credit purchases are examples of events

recorded business accounting.

In various activities of our lives depend on the reliability of accounting. For example, when we perform retrieval cash at ATMs (automatic teller machines) then we actually ordered the bank do the accounting records. The cash withdrawal led to reduced cash in the bank, and we are in a bank account balances are also reduced by the value of the rupiah that we mentioned., What happens if the bank reduces the balance of our account more than the amounts of money that we receive? We would ask those problems to the bank, and immediately close the accounts

us because it reflects that the bank accounting unreliable. Accounting for government organizations to prevent and detect crime of corruption or misuse of public money. criminals do not want to accept bribes [bank transfer because the event will be recorded in the accounting of banks which became the eradication of corruption are easy to trace the flow of funds to corruption. Business organizations called companies even use accounting as a language to facilitate operations, making business decisions, as well as to account for the implementation of the task manager. Accounting is also commonly used to compare the performance of a company with other companies. The company therefore used as the language of business accounting (Accounting is the business language). in a word, accounting for no where where and useful in everyday life, both for individuals and for organizations.

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