The Role of Accounting to Business and Society
Justin A. Case
Introduction to Accounting ACC101
Professor Jose Martinez
August 27, 2013
In today’s economy Accounting plays a huge role, as it points or refers to accountability and transparency in the business environment and paints a picture of any business. Also, it enables business managers and corporate leaders to make better comprehensive decisions regarding the financial shape of their business. Accounting is fundamentally described as a mathematical discipline in which allow companies to universally record, analyze and retrieve financial information that is critical to them. This information is ...view middle of the document...
It is their duty to make easy to understand financial statements, which the main decision makers such as corporate officers or potential investors can utilize and then interpret those statements to make sound or future business decisions.
Accounting and accountants are of great importance to the American society. One major importance of this discipline of today’s business environment is that it enables owners, investors and creditors make decisions on how to distribute their financial resources on their
investments. However, some people dislike accounting because it significantly increases the bottom line in regards to an increase in operating cost. According to professionals in this environment currently argued that accountants have heavily contributed to the decline in ethical abuse and have prevented damage to the economy and society. (Senaratne, 2011)
Based on my own past experience as a small business operator, the service industry is usually easier to operate or handle compared to other known industries. Additionally, my former Accountant once explained to me that some industries handle their accounting differently, but at his capacity, he learned that some were also easier to generate more than others. As a result of these known factors, I would have to again select a business in the service industry rather than selecting a merchandise business.
Service industries usually utilize employees to provide specific services to their clients. As a result, the financial transactions are generally recorded are in a system of deposits from clients or receiving direct payment after the services are provided. These service activities might take place in more than one accounting cycle, or just the same accounting cycle. (McIntosh, 2014) On the other hand, merchandizing companies usually purchase inventories and then resell them to customers. Financial transactions in this industry include purchasing, inventory, storing it and selling it to clients. These activities cannot occur in one cycle; then, occur in several cycles.
Automating accounting in the service industry enables the accounting department to carry out its activities more proficiently. However, since technology alone is unlikely to eliminate the risk, it is important that...