Importance of Accounting – What is it, function and aspects

We explain the importance of accounting for various types of organizations and its main aspects.

importance of accounting
Accounting is essential for making economic decisions.

What is the importance of accounting?

Accounting is a technical discipline that is dedicated to the analysis and measurement of the financial and patrimonial situation of a company or organization, both public and private, or even of an individual. Its purpose is to facilitate economic decision-making, that is, to be able to make them in an informed and responsible manner, rendering due accounts, also, before the law and society.

In this sense, it is an area of ​​essential knowledge in a world in which corporations, organizations and enterprises constitute the bulk of the productive force. They are human constructions often so vast and complex that information requires special treatment and becomes an essential asset for management and administration tasks. In fact, accounting often goes hand in hand with the latter.

Thus, we can summarize the importance of accounting in the following aspects:

  • The accounting allows you to obtain detailed, reliable and verifiable information at any time of our patrimonial state. This means that without it, we would be blind to our financial situation, or have at most a superficial approximation to it. Logically, without knowing how much we have and how much we owe, it is impossible to make good administrative decisions.
  • Good accounting It is a guarantee of accurate information to offer to the third party audit, either internal to the organization or external to it (such as the State), and thus comply with the provisions of the law in economic and financial matters.
  • The accounting provides an in-depth look at the operation of the company, although expressed in economic terms. It is, if you will, a financial X-ray of the organization, from which it is possible to determine how well or badly we have done, or how close we have come to the goals that we previously set for ourselves.
  • A rigorous accounting is a guarantee of the continuity of the company, since provides crucial information for budgeting and responsible asset management Of the same. It is not only a record of the movements carried out, but also a look to the future, which can anticipate opportunities, changes or difficulties.