Importance and role of accounting

Importance and role of accounting Accounting 601 assignment Accounting is the management of money and money is an important part of that business. Accounting is mainly preparation of financial statement and involve with transaction, budgeting and Cost controlling. According to Cote(2007), it is process of measuring the amount of money, analysing results, understanding them and make decision better. A proper accounting system is an essential to any business in order to manage its businesses running successfully. For any successful business, the main obligation is to maximise profits , minimize any loss and at the same time maintain its position as a responsible entity within the society. Coltman(1989) said , cost control system is simply an accounting oriented information system. However, the cost control system differs from the accounting system and this system allows management to see what is happening to cost, so that rational decision can be made, and necessary action implemented to correct undesirable situation.