The Role of Accounting in Business

This article discusses the crucial role of accounting in business operations. It highlights the functions of accounting in financial analysis, decision-making, and compliance with regulations. Accounting helps in tracking business activities, assessing financial health, and making informed decisions.

Project 2: Argumentative essay
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Table of Contents
Project 1 PART B: Argumentative essay.........................................................................................6
REFERENCES..............................................................................................................................10

Academic and Professional Communications 100
Project 1 PART B: Argumentative essay
Title:“To assess the role of accounting in business”
Clatworthy, García, Lara & Lee, (2020) established the fact that, Accounting is referred
to one of the most crucial process which is useful in recording the various set of financial
information pertaining to the organization. The accounting process is considered to be very
useful in analysing, summarizing and also report to the stakeholders of the company in order to
make strategic decision. Accounting is considered to be the system of documenting the various
financial activities which in turn are considered to be necessary for the growth of the business.
The key purpose of the accounting is to provide various stakeholders of the business such as
investors, suppliers, management, owners, board of directors, creditors, etc. This in turn helps in
measuring and summarizing various activities of the business and also communicate the same to
the interested parties in order to make strategic decision which is beneficial for the growth and
performance of the business. Accounting is considered to be very crucial for evaluating the
assets, equities and liabilities of the company. Massingham, (2017) argued that, one of the
primary role of the accounting in business is to record all the financial transactions in a
systematic and appropriate manner. Accounting is considered to be very useful in controlling the
cost of the business which in turn eventually leads to higher operational growth, sustainability
and attainment of economies of scale. The key role of accounting is that, it helps in evaluating
the performance of the employees which in turn results in higher operational growth and
productivity. The main role of the accounting is that, it is considered to be very useful in
determining the key cause of errors which in turn largely influence its business operations.
Managers in the organization tends to need accurate and timely information associated with the
financial data. This in turn is considered to be very useful in assessing and interpreting the results
of the financial reports. This in considered to be very useful in solving several financial problems
by identifying the fraudulent activities and errors while carrying out accounting.
Mintz, (2016) said that, the key role of accounting is that, it is considered to be very
useful in complying with the rules and regulations of the government. It helps management of
the organization to determine any mistake which has been made while reporting income. This in
turn might results in huge penalties, fines and charges. The key role of accounting is that, it helps

in planning goals and objectives for the future. The management of the company tends to analyse
the future budgets by taking into consideration the past historical data. Accounting is very
beneficial for the business because it helps in controlling the cost associated with hiring which in
turn eventually results in rapid expansion of the business. Accounting in the business results in
ensuring statutory compliance which tends to ensure that, liabilities associated with VAT, sales
tax, pension fund, income tax, etc. are properly addressed. One of the most accurate role of the
accounting is that, it helps in setting a clear picture in order to attain the financial position of the
business. It is very useful for the management to reduce the fraud and errors which in turn has
been carried out due to several fraudulent activities within the organization. The key role of
accounting is that, it tends to provide various necessary information which in turn is useful in
finding appropriate solution to the set problems. Accounting in turn also leads to analysis and
prediction of the financial ratios which in turn helps in gauging the performance and operations
of the various financial ratios of the company. External environment is considered to be one of
the key reason for balancing and maintaining attractive relationship for both the investors and the
company. Lai & Samkin, (2017) sought to analyse the fact that, accounting plays one of the
critical role in filing the various financial statements of the company with the registrars.
Accounting is considered to be very useful in future projections and creating the budget plan
which in turn leads to higher sustainable decision. The key role of the accounting is that, it is
considered to be very useful in analysing the business trends which is considered to be very
useful for financial decision making. Analysing the trends of the business helps company in
performing better in the business. This eventually leads to future growth and sustainability.
Accounting data is considered to be very useful in making several crucial de scion which is
considered to be useful in determining and evaluating the reliability and viability of the data. It
also management of the business in making careful analysis of the projections which in turn
eventually leads to in determining the hurdles associated with the return on investment. Th key
role of accounting for the business is that, it helps management of the organization to develop an
appropriate plan which is useful in meeting the targets. This in turn eventually leads to long term
operational efficiency, performance and productivity. Accounting is considered to be very
beneficial in setting the optimum inventory levels by effectively determining the break even
analysis.

Hassan, Haque & Ul, (2017) investigated that, the key role of accounting is to develop an
appropriate pricing strategy for the business which in turn helps in controlling the cost and
expenses associated with the business. Accurate accounting and financial information is
considered to be very beneficial for the business because it helps in developing projected product
mix and sales plan which in turn leads to long term sustainable growth and efficiency. This in
turn helps business in reaching the overall gross level of the profit by covering overhead cost. It
also helps in producing the relevant target for the profit which in turn affects the business
operations. Accurate and timely accounting and financial information helps stakeholders of the
business to take various investment decisions which are in favour for the growth and reliability
of the company. A well structure accounting system is considered to be very useful in providing
relevant information which are considered to be necessary and crucial for the better operational
efficiency of the business. Stafford & et.al. (2018) established that, there are various set of
accounting reports which mainly includes income statement, balance sheet statement,
shareholder's equity statement and cash flow statement. These accounting reports are tailored in
accordance to the needs of the individual manager which tends to provide timely, accurate and
relevant information. This in turn aids at making several business decision which are very crucial
for the development and growth of the company. Accounting tends to play a key role which
helps mangers in carrying out the responsibilities of the business. This in turn leads to higher
growth and operational standards. The key role of accounting is that it helps business in carrying
some financing, operating and investing activities which in turn is very beneficial for attaining
goals and objectives of the business. Accounting is useful for business to determine the change in
the financial condition of the business. Accounting is referred to as the backbone of the financial
records of the company. This in turn helps in facilitating comparison and also helps in
eliminating ambiguity which in turn is considered to very crucial for reducing any business risk
which in turn might hamper the business performance.
Birt & et.al. (2019) established the fact that, the key role of accounting is that, it helps
management of the business in tracking its business activities. It is considered to be very useful
for the management of the organization in maintaining the budget, forecasting revenue and
predicting the cash flow of the business. It helps top management of the organization to make
effective informed decision associated with the purchase, sales and investment for the particular
period. The key role of the accounting is that, it helps business in controlling the accounts and

financial transactions of the business. This in turn results in higher operational growth,
performance and productivity. Accounting is considered to be very useful in assessing the
financial health and profitability of the business. Accounting is considered to be one of the vital
concern of the contemporary business environment. This in turn is very useful in assessing the
cash flows, income, expenditure, assets and liabilities of the company. The key role of
accounting is to keep proper track of the transactions of the business. It is considered to be very
useful in assessing and discovering the corporate abuse and various other activities like
dishonestly, theft, greed, etc. Accounting is very beneficial in assessing the present financial
status of the business at a particular point of time. It is useful in detailing the business operations
and transactions. Accounting is considered to be one of the appropriate approach which helps in
analysing accounting and also summarize the activities of the business. This in turn leads to long
term operational performance, productivity and profitability of the business.

REFERENCES
Books and journals
Birt, J & et.al. (2019). Accounting: Business reporting for decision making. John Wiley & Sons.
Clatworthy, M., García Lara, J. M., & Lee, E. (2020). 50 years of Accounting and Business
Research.
Hassan, N., Haque, H. M., & Ul, M. (2017). Role of Accounting Information in Assessing Stock
Prices in Bangladesh. International Journal of Business and Social Research, 7(10), 18-25.
Lai, A., & Samkin, G. (2017). Accounting history in diverse settings-an introduction.
Massingham, R. K. (2017). The Role of accounting in legitimising the culture of the Australian
construction industry.
Mintz, S. (2016). ACCOUNTING FOR THE PUBLIC INTEREST. Springer.
Stafford, T & et.al. (2018). The Role of Accounting and Professional Associations in IT Security
Auditing: An AMCIS Panel Report. Communications of the Association for Information
Systems, 43(1), 27.
Online
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