accounting notions

Página 8

Accounting is a fundamental area for any company, regardless of its size or segment. She is responsible for recording all the company's financial transactions, as well as analyzing and interpreting this data for decision making.

To better understand accounting, it is important to know some basic concepts. The first is equity, which is the set of assets, rights and obligations of a company. Equity is divided into two parts: assets and liabilities.

Assets comprise the company's assets and rights, that is, everything the company owns that can be converted into cash. Liabilities, on the other hand, are formed by the company's obligations, such as debts, loans and taxes payable.

Another important concept is income and expense. Revenue is the money that enters the company, either through sales of products or services, rents, interest, among others. The expense is all the money that the company spends to maintain its activities, such as wages, rent, water, electricity, telephone, among others.

Based on this information, it is possible to understand the importance of accounting for the financial management of the company. Through the accounting records, it is possible to know what the company's equity is, what its revenues and expenses are, and what its profit or loss is.

In addition, accounting is also important for fulfilling legal obligations, such as paying taxes and preparing financial statements. Through these statements, it is possible to assess the financial health of the company and make strategic decisions for its growth.

Finally, it is important to highlight that accounting is not a static area. It is constantly evolving, accompanying changes in legislation and the economy. Therefore, it is essential that professionals in the area are always up to date and trained to deal with market demands.

In summary, accounting is a fundamental area for the financial management of any company. It allows you to record and analyze all financial transactions, comply with legal obligations and make strategic decisions for business growth.

Next page of the Free Ebook:

9Basics of business law