It is undeniable that every detail of economic and financial life requires accounting such as accountants nottingham. Because it has become something very important, especially in business entities. They use accounting as a tool to simplify the process of their business activities. Without accounting, economic activity will run slowly in both private and public (government) corporate entities. If this is the case, the economy will not grow well.
In short, accounting can be defined as the activity of recording the financial cycle. In a broader sense, accounting is a series of activities in recording, measuring, identifying, presenting, and reporting financial transaction activities. Its function is to produce financial information that can be read and understood by interested parties.
1. Decision-makers in the company (internal)
Such as managers, directors, shareholders who have an interest in analyzing the company’s financial condition. In addition, to make the right decisions for the continuity of the company’s running (Going Concern accounting principles).
2. Other parties from outside the company (external)
Namely investors and the government. Investors have an interest in seeing the financial condition of a company. Is the company’s finances in a stable and profitable state (can bring profit) so that it can provide returns in the form of high and sustainable dividends for itself? Meanwhile, the government has an interest in company financial information related to tax matters which must be fulfilled by the company.
It called art because in accounting there are no standard standards that must be used in the process of recording and processing financial transactions. It’s just that there are basic equations in accounting that must be met in order to obtain good financial information, easy to read and understand.