Business and Accounting

How Important Accounting in Business?
Although business is meant for profit, ti is of central importance in our economic society today because as we all know, there are so many people who depend their means of livelihood on employment in various business establishments. The direction and future success of its operations depends to a great extent on the ability of the business owners' or management to render decisions in behalf of the business.

Accounting provides business owners and management with information essential to the efficient conduct and evaluation of its activities. It gathers data which are of financial in character, stores, these data in the books of accounts and transforms them into a more meaningful source of information concerning the financial position, performance and cash flows from business operation as well. It is then, that financial statements are communicated to various users which include investors, employees, lenders, suppliers, and other trade creditors, costumers, government and their agencies and public and analyzed and interpreted through the accountants who are the only knowledgeable expert professionals in this field where accounting justifies its importance in the world of business.