IMPORTANCIA DE LA CONTABILIDAD

ACCOUNTING DEFINITION

It is the practice or discipline based on accounting knowledge and that focuses on the faithful knowledge that do  the company that for its operation and the best possible decision making. Through the use of accounting, people and companies have the ability to measure and analyze the behavior of their capital. Therefore, it is possible to distinguish between two modalities or forms of accounting: public and private.

IMPORTANCE OF ACCOUNTING

Accounting se do the most important element in every company or business, because it allows to know the economic and financial reality of the company, as well as have its evolution, its trends and what can be expected from it. It is a fundamental pillar in the administration of a company. For a company to work properly it is necessary to have a good business vision and control many factors.

MAIN OBJECTIVES SET BY ACCOUNTING        

The existence of accounting in both a public and private company is based on have and do a series of goals that they seek to achieve the success the company:

• Know exactly and faithfully the assets of a corporation, its accumulation of capital and resources, as well as its faithful financial and accounting image.

• In addition to do and carrying out a faithful analysis, it must serve as a protection measure against external threats or the malpractice of its management or administrators.

• It must substantially influence decision-making and the design of the company's business plan. In the public sphere it must have and do a configuration of adequate economic policies.

ACCOUNTING TYPES

Financial Accounting: It is one of the most widespread variants and have direct contact with many sectors. At large ranges this process do the compilation, classification, registration and information on operations in monetary terms, for external use, which usually occurs through the famous financial statements.

Managerial Accounting: This includes the development and interpretation of accounting information (timely and reliable) for decision making, it is usually for internal use by the Management of each company. The data provided have much more detailed than that produced for external use.

Public Accounting: Also known as budget accounting that do this refers to the information system used in the public sector. It is a variant of the financial accounting system that have the private.

Tax Accounting: Or tax accounting has to have approach on the control and supervision of a company's tax commitments. This is do always based at the rules established by national laws.

Project Accounting: This term have a powerful functionality for your company, it allows you to integrate processes and refers to a system that is responsible for following the financial progress of a project through frequent reports. From a general point of view, this se do a fundamental component of managerial accounting.

Social Accounting: Consists of the process of reporting the effects that have companies on its social and ecological environment. This se do mainly through the procedures and calculation measures, environmental reports that accompany the annual reports of the companies.

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