Benefits of Implementation a Good Accounting System Essay - 3

Benefits of Implementation a Good Accounting System - sample ExampleAccounting dodge requires three financial report documents the balance sheet, which determines financial position of the business, income statement, which shows if the business is making a profit or waiver and finally and cash flow statement which shows money inflow and outflow in the business.Business activities are run by money given to the vigilance body by the owners. Therefore, a financial statement is useful in monitoring the effectiveness of management. Financial statements also act as a beak used in making an assessment. These statements show how management spent resources allocated to them in the process of reducing the companions cost and increasing profitability (Kieso and Weygandt 34). It is the campaign of the accounting department to make such assessments and give a report.Good accounting system helps a companys stakeholder to make economically conscious decisions. The decisions made are based o n the information received after analyzing financial statements. Business decisions are always based on accounting information.The accounting system is also very important for record keeping. Information collected from numerous sources is received, analyzed and communicated to the prospective users for decision making. Based on accounting details, company records can be used to make monetary policies. Efficient accounting system helps to detect deception by putting in proper inwrought control mechanism to monitor events (Kieso and Weygandt 47). Effective and efficient tracking of internal events can be achieved by having a good accounting information system in place.