What is the importance of accounting department in a company?

The purpose of accounting for a business is to have a record of the receipts and expenditures of it's daily activities. Also, accounting makes it available for the business owners to assess and analyze the business's performance. This will help the owner to decide what improvements they need to make, or what practices to keep doing in order to keep the company at it's successful place. In order to file for tax returns, apply for a loan to expand your business, or for certain legal purposes, accounting is necessary. Accounting for your small business is also important so you are able to assess your financial performance. The financial statements such as the balance sheet and cash flow statement show financial information that is important in the success of your business. The balance sheet shows how much your business is worth and what your assets are. The cash flow statement shows where the future cash needs of your business are. Without any of these financial statements your business would not be able to account for the revenues and profits made from day to day, which results in mistakes and inaccurate records.

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