Accounting Consulting Services

What is Accounting?

Accounting is the process of recording or noting all financial transactions related to a business. The accounting process includes summarizing, analyzing, and reporting all financial transactions to regulatory agencies, authorities, and tax authorities.

Purpose of Accounting

According to its meaning, the purpose of the role of accounting is to collect, record, and report the company’s financial position and cash flow completely and in detail in a certain period. Three Point some of its goals:

Provide all financial information that is useful for addressing all financial needs of the company. For example, providing an overview of the potential for business progress or knowing management weaknesses.
Provide up-to-date financial information on the company, from active income to passive income.
Provide an overview of information related to changes in the company’s economic resources. Such as the rise and fall of the company’s economic conditions that can change due to changes in sources of income. For example, asset status, debt status, and capital status.

Accounting Functions

1. Source of Financial Information

You can find out various information about transactions that take place with your company. For example, how much cash has been collected or what assets your company has. And various financial reports of the company that are needed by several parties are contained in the accounting report in detail.

2. Basis for Determining Further Steps

The existence of a clear source of information can be the basis for considering the company’s further steps. For example, determining whether the company needs to increase or reduce production of goods based on the financial conditions stated in the report.

3. Production Planning, Supervision, and Control

The role of the accounting function in business is to make it easier for companies to plan, supervise, and control the production of goods. With the existence of accounting reports, production planning of goods can be carried out carefully, both for monthly and annual planning.

The formulas that you get from accounting reports can help you develop your business to be more effective and targeted. On the other hand, if in one of the processes you encounter an obstacle. You can immediately overcome it without making the problem worse.

4. Financial Allocation

Accounting functions to control any expenditure in the company, from internal to external expenditures. You need to do this so that you can avoid losses due to uncontrolled expenditures.

In addition, you can allocate finances properly according to your company’s financial condition. After that, business goals can be realized and finances remain stable.

5. Company Evaluation Tool

You can use accounting as a tool to evaluate your company’s performance in a certain period. Through this report, you can see and overcome problems or deficiencies that have been made. The hope is that the next period will not make the same mistakes and the company will be better.