Financial and accounting management is very important as it gives the organization to maximize its value and assets. Moreover not only in the business but it is also used in daily life. People hire bogholder manage their company balance sheet, ITR, Debtor accounts, Accounts Payable, Payment of wages to workers and employees, yield Control, Tax Reconciliation and reporting, budgeting, Monthly Accounting and Reporting, Imports and development of Navision, economic analysis, Analyses of stores sales, etc. Let us take a look why financial accounting management is essential for any organization and individual.
Accounting Management helps to decide the objectives
An organization needs to clarify its objectives so that they can work for the same purpose. Financial management not only defines the objectives of organization but it also pre-determined the expenditure and work allocation to support økonomi and industrial growth. Defining the object help an organization realize that whether the decision which is being taken is profitable for organization or not. Financial management also administrates entire functional area of the business to get the objective of the organization.
Financial management helps deciding finance sources
When firm appoint s an expert bogholder to monitor and handle all the financial activities then the responsibility of account manager is according to financial accounting to get the required funds for long term assets of the company. The assts might be in the form of term loan, shares, bond etc. Now with the help of account manager firm will decide that from where the funds can be raised and if it is raised then in which ratio it should be invested to get long term objectives
Financial accounting allows fruitful utilization of resources
To strengthen the økonomi of a firm it is crucial to use their resources in an organized manner so that it can get maximum profit. Firm has fixed and current assets which conclude vast investment. And holding assets who do not give at least minimum return to shareholder , so when wrong decision purchasing and disposing of an asset can be dangerous for organization , in that case Financial accounting balance its current and fixed asset so that it could be maintain easily and do not overburden on the firm.
Well there is any question about it that the role of accountant is very crucial if you want to survive individually as well as organizational growth. The account manager capability is the key factor which helps organization to reach its determined goal.