1-1 Discussion: Using Accounting (Small Grocery Store)

Use of Accounting in Business
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Use of Accounting in Business
The preferred choice of business is a small grocery store. The business will be considered successful if the entrepreneur is able to repay all his obligations without having to borrow. Such obligations include payments to grocery suppliers. Similarly, if the owner makes huge profits, the business will be considered a success (Clayburg, 2001). In addition, a steady rise in the number of customers, coupled with an increase in the owner and customer satisfaction are all indicators of business success.
Accounting provides an entrepreneur with the financial knowledge required to arrive at sound business decisions (Huseyin & Danis, 2016). The choices relate to both the current and future financial health of a concern. The knowledge of financial and management accounting will enable the grocery store owner to operate the business efficiently. Financial accounting will provide information that the business owner will avail to suppliers and the government. On the contrary, management accounting deals with the value of sales and profit targets. Thus, the grocery owner will use management accounting information when making the daily business decisions (Cunningham & Loren, 2014). Record keeping knowledge will also be required, because such records as loan statements, tax data, bank ...