- Provide Information about Financial Performance: The process of Accounting provides accurate and factual information regarding the financial performance of an organization during a given financial year. The organizational information includes profit earned, loss incurred, financial position, and other essential facts required by the different users of accounting information.
- Provide Assistance to Management: The process of accounting helps the management of an organization in effective business planning and decision-making for the attainment of organisational objectives. The management can do so with the help of the financial information provided by the accounting process.
- Helps in Raising Loans: For the survival, success, and growth of an organization, it needs finance. For this purpose, an organization can easily raise loans from different Financial Institutions and Banks based on the information provided by the accounting process in the form of financial statements and reports.
- Facilitates Comparative Study: As an organization prepares and maintains systematic financial records, it can effectively perform a comparative study. An organization can compare its current year’s performance with the previous year’s performance or with the performance of the competitors.
Introduction to Accounting
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