My Blog

The Significant Role of Accounting in Today’s Business

by admin on July 29, 2015 Comments Off

With the onset of rapid financial innovations, it has become more important for everyone to learn accounting- the basics at least. Accounting is the so called ‘language of businesses’, so if you want to understand the commercial revolution happening around you, you better learn accounting. This subject is no longer exclusive to neatly dressed citizens who wear neck ties. Though there are those who can offer accounting services Singapore for you, you still need to learn it yourself.

In today’s corporate world, accounting is used not just for bookkeeping services, but also to determine past, present and future actions of the company. It provides accurate measurements of the entity’s performance. Most of the time, executives depend their decisions on financial reports forwarded on their desktops. Extension of accountants‘ function is more prevalent especially now that there’s a lot of accounting software which can do the routine tasks.

Earning profits is perhaps the ultimate goal of a business. Accounting can be used to manage the financials of a company to achieve proper balance, consequently to gain maximum profitability given their organization’s resources. Because monitoring can be done, costs can be reduced and sales can be increased.

Accounting plays a major role in expansion prospects of companies. By using it, executives will know how much the cost of their plan is. They will also know how much of their earnings should be kept and how much they can give to investors as dividends. Managers can project their cash flows in order to determine if they will have enough cash for their expansion. If they are cash deficient, they can choose to finance either through loans or additional shares of stocks.

Another major role of accounting is the detection of red flags in an organization. Accountants can determine which controls are weak and are therefore potential sources of misstatements or fraud. They can then suggest improvements to create a smoother and more reliable process flow for the company.

You can also find accounting services in Singapore which offers help on how you can handle your money. They can teach you how, where and when to invest your cash.

Learning accounting can directly affect your life. You can use it to calculate your interest in that education or mortgage loan you are planning. Or maybe you would like to compute, at different tenors, your monthly installment payment on a motorcycle or car you are eyeing. You can also use accounting to plan and monitor your daily expenses and savings.

adminThe Significant Role of Accounting in Today’s Business