Why is accounting important?

Accounting can be defined as the system of setting up, maintaining and auditing the book of the company. It does not simply record the transactions of a company but organize them in a suitable format to provide useful information to these who are interesting in the activities of the firm.

Accounting help to record all the transactions of the company such as selling the products, purchasing the raw materials or paying wages for the labor. The managers will find it easy to control the company thanks to this process. Moreover, accounting can support company leaders in short-term and long-term financial management and for a better planning, cash flow managing etc.

The information that accounting provides is very important for financial forecasting of a business and especially in decision making. Without accounting, it is difficult to control and evaluate the performance of the company.