accounting objectives

Objectives of Accounting

Accounting is an essential discipline for the financial management of a company. Its objectives are fundamental for recording, analyzing and interpreting accounting information, with the aim of providing accurate and relevant data for decision-making.

Main Objectives

The following are the main objectives of accounting:

1. Record of transactions

The main objective of accounting is to record all financial transactions carried out by the company. This includes buying and selling products, paying expenses, receiving revenue, among others. Proper recording of these transactions allows you to monitor the company's financial and asset movements over time.

2. Calculation of the result

Accounting also aims to determine the financial result of the company in a given period. This is done by preparing the balance sheet and income statement for the year (DRE). Through these accounting reports, it is possible to verify whether the company made a profit or a loss, as well as analyze profitability and operational efficiency.

3. Asset control

Accounting aims to control the company's assets. This involves recording and measuring assets, liabilities and equity. Proper equity control allows identifying the company's financial situation, as well as monitoring the use of resources and their appreciation over time.

4. Provision of information

One of the main purposes of accounting is to provide relevant information for decision-making. Through accounting reports, managers can analyze the company's financial situation, identify strengths and weaknesses, assess the feasibility of projects and plan future strategies. In addition, accounting also provides information to stakeholders such as shareholders, investors, creditors and regulatory bodies.

5. Compliance with legal obligations

Accounting also aims to ensure compliance with legal and tax obligations. This includes preparing and submitting accounting and tax returns, paying taxes due, and complying with accounting rules and regulations. Compliance with these obligations is essential to avoid legal sanctions and maintain the company's regularity.

Conclusion

Accounting objectives are fundamental to the financial management and success of a company. Through registration, verification, control and provision of information, accounting provides accurate and relevant data for decision-making, compliance with legal obligations and monitoring of assets. Therefore, it is essential to have qualified professionals and efficient accounting systems to guarantee the quality of accounting information and the proper functioning of the company.

Next page of the Free Ebook:

3accounting principles

2 minutes