Businesses of recording financial transactions, classified, summarized, and reporting is a science.
Economic activity in the financial qualifications of all firms in the currency transactions and events are represented by the recording, were classified, the report summarizes and interprets the results and analysis which is a branch of science.
Accounting, business assets and resources, the formation of them being a format, that of enterprises as a result of transactions in these assets and changes in resources, the financial situation of enterprises will explain the details and provide this information to relevant persons and institutions forwarded to an information system is composed.
Established only for the purpose of accounting profits for businesses, not non-profit society that serves to benefit applies to all firms. That's why businesses also include all institutions. But in general accounting system, profit is more important for businesses.
Business: a specific commercial purpose, one or more persons to come together, they have established a specific organization capital are.
Accounting for the specific tasks to fulfill the functions are available. Of accounting functions are called to this task. Of accounting functions of recording, classifying, summarizing and reporting on the four main groups can gather.
Save Function: Financial transactions based on the accounting system according to the documentation of accounting records is made under. And the first is the most important function of accounting. Keep accurate and proper accounting records as a means of functions without the other does not. Accounting systems in each transaction must be registered first.
Classification Function: Saved information compiled during certain time periods are divided into groups according to quality. Thus, the different nature and with each other groups mixing process can be analyzed in different classes. Transactions within the accounting classification of accounting systems.
Summarization Function: Classes are being collected at the end of the period Publish your transactions easier to draw conclusions and to ensure control of the records are summarized. Perhaps hundreds of thousands of business transactions at the end of the period would they do. This process will take a long time to examine one by one, to see summaries of the same quality to persons in the process provides more benefits. Table summarizing the function of accounting in the accounting system
Reporting Function: The last recorded in the reporting function, classified and summarized results of operations through financial statements to the revenue stage. Phase is also reporting these results. The latest phase of accounting and reporting system is to comment stage. Are among the most important function of accounting. The report reveals the results in all kinds of business information and comments are made about the business. These reports are due to decide on future business and new decisions are taken. Accounting statements are used in the process of reporting and the most important of these statements.