Accounting tasks: Why do you need to keep accounting?

As you know, the activities of any company and even of an individual entrepreneur should be reflected in the financial documentation. This rule is immutable for any company, regardless of the scope of the activity, the scope and complexity of the operations performed. In this article we will describe what accounting tasks are and explain why its mandatory management is not a legislative whim but a necessity.

First, let us pay attention to the concept of an information system, which is a means of providing people with the information they need in the course of their activity. Accounting, in fact, is the same information system for the enterprise and provides the necessary data to users of accounting information. Based on this, we can formulate the main objectives of accounting:

1) The first and most important task is the formation of the fullest and most reliable picture of the company's economic activities . The importance of this accounting task is that, based on the data presented in the reporting, the company's managers, investors, shareholders and other information users make various kinds of decisions: managerial, financial, decision to grant or not grant loans, and so on. The more accurately recorded, the fewer errors contain financial data, the more likely that users of information will make rational and profitable decisions, which means that their personal well-being and well-being of the firm will grow.

2) Control over the work of the firm, the timely identification of deviations from plans and forecasts, the identification of their causes and the formation of proposals to adjust the situation - a study of accountants helps to understand whether the firm is working according to management plans. In the event that the values of the benchmarks differ from those foreseen, this should be the reason for a more detailed analysis up to the official investigations.

3) Identification of various reserves at the firm, due to which additional financial, payment, and economic sustainability of the company can be ensured. This refers to the control of the availability and movement of various kinds of resources - financial material (raw materials, consumables, tools, etc.) and labor

4) Control over the expediency of transactions - due to the analysis of accounting indicators, you can determine which transactions are beneficial to the firm, and which, on the contrary, only bring losses. It is thanks to the fulfillment of this task of accounting that enterprises curtail those types of economic activities that are not profitable for them and move to more profitable ones.

5) Control over the compliance of the enterprise with the norms of the legislation - by studying the reporting of the enterprise, the supervising authorities (tax administration, pension fund, social insurance fund ) can draw conclusions about whether its activities are consistent with laws regulating it, whether all taxes and mandatory contributions are paid in full . In case of violations, these bodies may influence the organization in order to return it to the legal framework.

Based on the above list, we can conclude that the purpose and objectives of accounting fully and fully explain the need for its conduct. It is thanks to competent accounting that a firm can provide the necessary information to persons who are directly involved in its daily activities and development. In addition, accounting allows you to quickly monitor all ongoing operations, and in case of problems, as quickly and efficiently as possible to respond to them.