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Howbusiness can Benefit in Accounting
Accountingis very useful to businesses owners as well as the other users whomay need to know the economic performance of various enterprises.With the help of the accounting information, the owners of thecompany will be in a position to set goals that can be achievedaccording to the capability of the business. The goals may beachieved in the long-run or short-run provided the business isoperating at an amicable rate. Once the owners of the business or themanagement of the company have set the goals, the accountingknowledge will enable them to assess the progress and make anycorrections in case there are any deviations from the originaltargets set. For instance, if a firm wants to know its profitabilityso that it considers making an investment, the accounting statementswill enable it to make the correct judgments.
Accounting,therefore, provides vital information that can be used by themanagement of the company to successfully operate a business (Duchac,Warren and Reeve 3). The accounting information will aid in makingthe decisions of the company that will enable the firm to grow as awhole. On the process, the business can benefit from other outsideusers of the accounting information. For instance, investors look atthe financial records of business before they decide to invest in anyfirm. If the information is well maintained, the company is likely toattract investors who will inject additional resources into thebusiness that will further be used for the growth objectives.
Therefore,the business will benefit from accounting in several ways that maysee the company grow to different levels. There is the need for eachcompany to maintain proper accounting records to enable themanagement make decisions and set goals.
WorkCited
Duchac,Jonathan E, Carl S. Warren,and James M. Reeve. Accounting Using Excel for Success.Mason, Ohio: South-Western, 2011. Print.