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Explain the accounting function within a firm. What does this function do, and why is it important?

User AntonioMO
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Answer and Explanation:

Accounting can defined as the process of keeping financial records of transactions of an organization, summarizing, analysing and reporting these financial transactions to interest entities who use these reports inaking financial decisions pertaining to the organization. In other words, the accounting function encompasses keeping accurate financial records with the aim of communicating and utilizing this financial information in making good financial decisions.

The accounting function is important because through accounting:

We are able to keep records of financial transactions on a day to day basis

We are able to know the financial position of our business and tell where something may be going wrong financially such as any fraudulent activities

We are able to make more informed decisions given the financial information at our disposal

User AravindaM
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