Accounting is a science and technique that provides useful information for the process of economic decision making. This discipline studies the equity and presents the results through financial or accounting statements.
General accounting involves the analysis from different sectors of all the variables that affect this field. For this, it is necessary to carry out a systematic and chronological record of the financial operations.
The general accounting of a company, therefore, involves the control of all its daily operations i.e. purchase, sale, expenses, investments, etc. The accountant must record, analyze, classify and summarize such transactions to be dumped into a statement or balance with truthful information.
There are different specialized phases that are part of the general accounting; let’s look at each one in detail below;
The cost is dedicated to classifying and collecting information on current and prospective costs.
The fiscal is based on the tax legislation of each country. The accountant should be responsible for preparing the relevant reports for the submission of statements to the Public Administration and for the payment of taxes.
Financial is the phase that focuses on the quantitative information of transactions and other economic events that are susceptible to quantification.
The administrative is linked to the preparation of internal reports. The information is analyzed by managers of the organization, who will make management decisions based on the data provided. The policies of a company are usually based on these reports of administrative accounting.
Computer Software for Accounting
Every business that seeks to function properly must rely on accounting. Fortunately, the internet offers high quality tools for this purpose, and some of them are free, and those that require a monthly payment, are always cheaper than the salary of an accountant. They have been specially designed to assist those entrepreneurs who do not have the necessary resources such as an accounting department to carry out a thorough control of their activities.
Accounting is used in large companies or institutions of the state, when in a nucleus family, the parents manage and record expenses of food, education, transportation and recreation, are using a historical accounting method which allows them to account for expenses and settle accounts to lead a quiet life.
Accounting is important, since cost control is crucial when it comes to having responsibilities and executing plans. A family, an institution or an efficiently managed company can execute social welfare plans, as well as families with effective accounting can plan vacations in addition to the normal expenses whereas a company can invest in the productive growth and expand its profit prospects.