Accounting objectives (general and specific objective)

We explain what are the objectives of accounting in public and private areas, what is the general objective and other specific ones.

accounting objectives
Accounting helps you make informed and responsible decisions.

What are the objectives of accounting?

Accounting is a technical discipline whose purpose it is the measurement and analysis of the financial and patrimonial situation of a company, organization or individual, both public and private, in such a way that it can make informed and responsible decisions, and can fairly render accounts before the laws and society itself.

Therefore, the general objective of any form of accounting is none other than to collect said economic information from the organization or the individual, in a systematic, continuous, orderly and verifiable manner, which serves as an input for the control and management processes.

The latter implies the contrast with the goals and objectives set, so accounting also provides relevant information to know if the organization is on the right track, at least from a budgetary and financial point of view.

But since accounting is an exercise with so many edges and complexities, different specific objectives can also be identified, that is, smaller purposes or tasks that it must also fulfill, and that are those that allow it to fulfill the general purpose detailed above. These include the following:

  • Keep an updated and continuous record on the economic operations carried out by the organization, both income and expenses.
  • Provide an updated balance at any time of the financial situation of the organization, as well as other specific financial information.
  • Establish equity in monetary terms of the organization, through the review of its assets and liabilities, so that its economic performance can be evaluated.
  • Anticipate financial situations that the organization must or will face in the future, such as business opportunities or financing crisis.
  • Respond in a reliable and verifiable manner Before third parties of the organization or outside of it (the State, for example) regarding the audits and legal requirements of the financial year.
  • Establish guidelines for budget design of the organization.