Accounting and Business (PowerPoint PPT)

Accounting and Business

Lecture Outline
1. The nature of a business.
2. The role of accounting in business.
3. The importance of business ethics and the basic principles of proper ethical conduct.
4. The profession of accounting.
5. The development of accounting principles and relate them to practice.
6. State the accounting equation and define each element of the equation.
7. How business transactions can be stated in terms of the resulting change in the basic elements of the accounting equation.
8. The financial statements of a proprietorship and explain how they interrelate.
9. Use the ratio of liabilities to owner's equity to analyze the ability of a business to withstand poor business conditions.

Accounting is the way a business keeps track of its operations. Accountants analyse the business finances so the owner can make better decisions. This information is organized into reports that show the financial health of a business.

Accounting helps business owners meet their compliance obligations. It also helps them make smart decisions with their money.

Business accounting is the systematic recording, analysing, interpreting and presenting of financial information. Accounting may be done by one person in a small business, or by different teams in large organizations.

Accounting refers to the systematic and detailed recording of financial transactions of a business. There are many types, from accounting for small businesses, government, forensic, and management accounting, to accounting for corporations.

Why Is Accounting Important?

Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.

There are three key financial statements generated by your records.

1. The income statement provides you with information about the profit and loss
2. The balance sheet gives you a clear picture on the financial position of your business on a particular date.
3. The cash flow statement is a bridge between the income statement and balance sheet and reports the cash generated and spent during a specific period of time.

It is critical you keep your financial records clean and up to date if you want to keep your business afloat. Here are just a few of the reasons why it is important for your business, big or small!