The use of accounting information: Importance of Accounting

Importance of Accounting
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Importance of Accounting
Accounting plays an integral part in everyone's life. It is the backbone of financial world because any financial transaction applies one or more concepts from accounting. Different societies use accounting information for various purposes. Accounting enables businesspersons to keep record on the progress of their businesses, analyze the recorded data, and make viable decisions concerning the future operations of the business. It also helps businesses to determine the costs, and benefits associated with sustainability.
Currently, accountants have been acting as financial advisors to the potential investors. They help these investors with the relevant information, and guidance in order for their business to run successfully. They also help them to make a wise choice on the type of business to invest in, after scrutinizing the various factors that may be a threat to a newly established business. In addition, accounting has become more diversified as it also includes studying of various laws that apply to business transactions (Ingram & Albright, 2007). As a result, accountants are nowadays playing an active role in taxation laws, company laws, and other corporate legislation...