What are fundamentals role of accounting in business
Answer (1)
The fundamental role of accounting in business is to provide a clear and organized way of recording, summarizing, and interpreting financial information. It helps business owners, managers, and stakeholders understand the financial health of the company and make better decisions.Key RolesRecording transactions – keeps track of all money that comes in and goes out of the business.Monitoring performance – shows whether the business is gaining profit or experiencing losses.Decision-making – provides accurate data to guide budgeting, investments, and strategies.Compliance – ensures the business follows tax laws and financial regulations.Communication – presents financial reports that inform owners, employees, and investors about the company’s status.In short, accounting serves as the “language of business”, because it explains the financial condition and performance in a way that supports growth and stability.
