In this series of articles suggested that the following topics. In this article I discussed the first below. More articles on other topics described below may be published immediately.* Meaning of the bookkeeping
* The definition and purpose Accounting
* Accounting System
* Branch Accounting
* Use of accounting
* Limitations of Financial Accounting
* Explanation of key terms of Accounting
* Accounting Cycle
* Responsibility of accountants
* The importance of accounting data
* Persons interested in accounting information
In today's world we have for each activity with multiple motives, that's the goal. In most cases. The goal is to gain an advantage, while in other cases, the objective of social security, providing education, health, etc. What is the purpose of this activity is probably an organized affair. Every organization is making effective use of resources-materials, labor, services, capital and work for the people in the organization information. Money should be spent carefully. If someone brings in random order, the day will come when he will be left without money. The same can be said about business. A company receives money from various sources, including the sale of goods, sale of assets, receipt of income such as rent, interest, etc. This committee should spend money on such things as expenses, purchases, etc.
A man of business should be firm to manage in such a way that he receive more than it spends, otherwise he would be in trouble because he would have to meet the cost of the original amount invested by him to start a business . So as a result of capital will be reduced this loss. When this process has allowed for a longer time than the entire capital will be cleaned. If employers to manage the business in an efficient manner and if the reception is over year after year payment prosperous and growing in size.
So we can say that raising capital gains and reduce losses. Note that the profit or loss is due to the cost of goods sold and sales. In practice, when a company runs on a profit is to sell goods at such prices as would enable him to not only the cost of goods sold expense account, but other costs such as rent, salaries, interest, insurance, etc. So to meet to benefit from both the sale must be kept high enough for any costs or expenses to be kept so low that they are fully satisfied from the sale to satisfy. Furthermore, even the business community that a particular feature furniture, buildings, machinery, equipment, etc. Likewise, he has also borrowed money from time to time. In view of the property in good condition, the debt to repay in time, to reduce costs and increase revenue needed for a constant monitoring, it is necessary that the operator well informed of the behavior of this object.
In order to provide information such as accounting art developed. It provides the following information for dealers:
(1) How much will the total income during the period;
(2) What would the expenditure during the period of salaries, wages, lighting, insurance, tariffs and taxes, etc.;
(3) How much will the profit or loss;
(4) How much will the capital and cause an increase or decrease, (5) The nature and value of assets of the company;
(6) The nature and amount of debts;
(7) Customers are owed to the company and the amount in each case;
(8) Suppliers to whom the company must pay and the amount in each case, and make
(9) Other facts filed sales tax or income tax.
Sense Accounting
Accounting is a branch of knowledge that tells us how to record financial transactions. The need arises because the transaction record
(1) difficult to get a variety of payments and revenues that occur during a given period to remember;
(2) in the form of business organization business modem control lies with the person who is different and the results will be reported to the owner;
(3) financial information, necessary for the purposes of costing, budgeting, forecasting and planning, and
(4) accounting data must be submitted to various government bodies such as income tax and VAT authorities for tax purposes.
Most of us keep some sort of written reports of their income and expenditure. Essential idea behind maintaining such a record to show the correct position on the income and expenditure. If clear and systematic record that can be easily understood. This should indicate to whom the payment is made, when and for what. The need for a record of income and expenditure to maintain its clear and systematic gave birth to the subject of accounting. Accounting can be described as "as the art and science of recording business transactions in a systematic and chronological."
The need for registration of all transactions are clearly and systematically not be overstated. Goods can be sold on credit for some people. The latter will pay the price of goods to the seller later. Sellers want to know, from time to time what the amount owed and to whom. However, a strong memory, which can, one can not expect all to remember details of all transactions. Moreover, the business object is to make profit, and every trader wants to know at the end of the year how much profit he has earned during the year. For this purpose, he will need a lot of factual information that can be derived from written documents or automated transactions, provided that such information is stored correctly in modern times by using computer software like HiTech Financial Accounting. Appropriate treatment, such as a passbook needed for entrepreneurs.
