Accounting function in informing decision making and meeting stakeholder and societal needs and expectations

   Accounting Function

Accountants can provide information about the financial position, results of business activities of company units for different subjects to use the information to make appropriate decisions by collecting information about financial and economic events, processing information, and using scientific methods.

For businesses, the financial outcome of a company's operation, such as information regarding the company's profit and loss, will be mentioned on a financial report so that managers and owners may understand what's going on with their money and make better decisions. Furthermore, any company's corporate finance and accounting infrastructure is vital. It is genuine and adheres to objective rules. A company's financial and accounting systems are also impacted by its business aims and objectives. The accounting system will properly assess the need for capital, choose funding sources, and select business leverage methods to mobilize funds. Accounting plays an essential role in decision-making and supports the business owner in establishing or implementing regulations to increase the benefits of the business process. It serves as a starting point for investors to examine and compare the financial health of companies that issue securities. It aids creditors in determining a company's solvency, liquidity, and creditworthiness.