What is the importance of accounting in a company? –

The accounting It is a branch of financial economics that is responsible for producing quantitative information of value on the transactions of a person or company. Next we will know more about its importance in a company.

One of the pieces of advice that is constantly heard in the entrepreneurial world is that for a company to be successful, the person who leads it needs to know their numbers. mentions it as one of the keys to successful business. And there is no better way to know the numbers of a company than through accounting.

Accounting goes beyond books, invoices and financial statements, but is one of the best tools to know the current and future status of a project. With the help of this discipline you can make more accurate and long-term decisions that will ensure good results. You do not believe me? Let’s talk about the importance of accounting and at the conclusion of this article, you will know how essential it can be.

What is the importance of accounting?

The importance of accounting lies in its objectives, since it provides leaders and decision makers with precise information on the economic situation of a company, in relation to profits, losses, sales, assets and liabilities.

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Accounting Objectives

Accounting aims to:

• Keep track of all business operations, both income and expenses.
• Maintain financial control of different areas of an organization.
• Get a balance sheet and income statement for a company.
• Help decision-making and anticipate difficult situations.
• Provides a panoramic view of the operation of an enterprise.

In general, we can talk about accounting as the discipline that helps us to have an extensive X-ray of a project, making it easier to diagnose improvement or growth in different areas of the company.

What is the importance of accounting in a company?

Speaking specifically of their role in organizations, the importance of accounting lies in the benefits it brings to its management.

Here I list some, to exemplify this point.

1. It allows the correct administration of expenses, inventories, costs, income and expenses.
2. It makes it possible to inform external and internal organizations of the company’s financial situation.
3. It keeps a record of all the transactions carried out in the company, facilitating the annual, monthly or quarterly comparison.
4. Supports the correct management of inventories, accounts receivable, payments, fixed and variable costs.
5. It helps to know the financial health of a company.

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If you have a business or want to undertake, knowing something about accounting or having an expert on the subject is essential, since through their knowledge and skills, you will be able to have greater control of your company, know in which points you are spending more , which one gives you the highest return on investment and where to focus if your goal is to grow and expand your business operations.

What is the importance of accounting in the industry?

Although the goals may be somewhat similar, the accounting in industry It has a certain approach that may not be a priority in certain types of companies. Per se the importance of accounting in the industry It occurs for these reasons:

1. Plan and control the operations of a company.
2. Helps maintain the costs derived from purchases from suppliers, labor and product assembly.
3. Support the design of future budgets, purchase of raw materials, hiring, renting and more.
4. It allows the company to know the expenses and income derived from the investments made.
5. It makes it possible to obtain a general balance, where the financial situation of the industry is known.

Imagine that you own a tennis factory, thanks to accounting you could know how much it costs you to produce a pair of shoes, what the cost of raw materials and labor is, as well as what percentage of profit you would have to include in the price you pay. you give to the warehouses to make it a healthy return on investment. That’s where the importance of accounting in industry.

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What is industrial accounting?

When we talk about industrial accountingwe refer to that branch of accounting that is dedicated to quantifying the value of assets and liabilities of an organization dedicated to the production of goods.

Among its objectives is knowing the behavior of profits, losses, production values ​​of certain products or services as well as defining sales costs according to manufacturing volumes.

What is the importance of accounting in the home?

At home, the story is not much different. The importance of home accounting It lies in the fact that thanks to it it is possible to keep the financial balance of a house, that is, it is possible to know what the main inputs and outputs are, in addition to calculating possible obstacles that may arise in the future.

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How is accounting done at home?

Although it is not required or make an accounting report, there are certain methods to keep the home accounting. Follow these steps!

1. Keep track of money inflows.
2. Keep a record of money outflows: purchases, fixed expenses, variable expenses, service payments, etc.
3. Make a comparison between both amounts and define if there is a positive or negative balance.
4. Make decisions regarding the outcome of your finances.

Doing this simple exercise will give you perspective on how organized you are in your personal finances and thus know what you need to meet certain goals, such as going on vacation, traveling, buying some equipment or investing in real estate.

What is the importance of accounting in today’s society?

In today’s society, accounting is one of the most important economic disciplines, since it is not only useful for companies and industries, but its principles can be applied to multiple productive areas, including the family economy.

Not for nothing, the accounting degree is the 3rd career with the highest number of graduates in Mexico, according to . The occupancy rate for this career is one of the highest, with 96.5% exceeding the national average of 95.9%.

Within the main sectors to which accountants are dedicated in Mexico, the transport, mail and storage sector ranks No. 1 with 34% followed by manufacturing industries with 21%. These data will surely give you a better dimension of the importance of this profession in today’s society.

In conclusion

I hope that with this article you have understood why it is important accounting in a company and in what lies the importance of managerial and financial accounting. Thanks to it, entrepreneurs, decision makers and even investors can make better decisions in organizations, impacting the present and future of their company’s business activities.

Having an accountant or an accounting team on hand is of vital importance to resolve possible conflicts related to the entry and exit of a company, in addition to having a professional in the field aligned with the mission and vision of the organization, who will surely be able to provide timely information for its management.

In addition to an accountant, there is another tool that can catapult the development of a company: an online store. Selling on the internet is one of the most effective methods to boost the growth of a business, as it allows you to reach more potential customers, expand brand awareness and create a community around your project. Start selling online with Tiendanube!

Tiendanube is the preferred platform for entrepreneurs in Latin America. More than 90,000 brands use our technology every day to close their sales and get their products into the hands of their customers. It is the only tool without commissions in Mexico, which allows you to create your virtual store from just $3 MXN per day. And the best of all? You do not need advanced knowledge in programming to achieve it. Check it out for yourself! and fall in love with your new online store.