What are the Functions of Accounting

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                          If you guy are searching for Accounting notes then you come to the right website.

In today's post, we are going to talk about the what are the Functions Of Accounting and its types so let's start.

Functions Of Accounting

Function Of Accounting

There are 6 important functions of accounting. These are given below –

1. Accounting work

2. Interpretation work

3. Communication work

4. Statutory Functions

5. Providing security to the assets of the business

6. Decision Making

1. Accounting Work – This is the basic work of accounting. Under this work, the preliminary books of the business are included in a date-wise, systematic manner, classifying them in the correct account, and preparing accounts from them. It also includes the work of trial balance on the basis of which the final account is prepared. The trading account, profit and loss account (Profit & Loss A/C) and balance sheet are prepared under the final account. Is.

2. Interpretation Work – Under this, the main work of accounting is to explain and analyze the financial statements and reports for the parties interested in the information.

3. Communication Work – The way we interact with other people through language. In the same way, accounting helps to know the financial condition of the business and other information and provides it to all the parties which are necessary.

 

What are the Functions of Accounting

Some Other Functions Of Accounting 

4. Statutory Work – Meeting the statutory requirements is an important function of accounting. Several types of laws and legislation such as the Sales Tax Act, Income Tax Act, Companies Act, etc. emphasize the submission of many types of details. For example – Income Tax Returns, Sales Tax Returns, Final Accounts, etc. This task can be accomplished only when the accounting is kept properly.

5. Giving protection to the assets of the business – It is an important function of accounting to give protection to the assets of the business. This work can be successful only when proper accounting of all the assets is kept.

6. Decision-making - Accounting provides important data in any business. So that there is convenience in decision-making. It is considered to be the most important function of accounting.

Conclusion

Here in this post, we add all related information about the Functions Of Accounting so if you are searching for what are the functions of an accountant or financial accounting functions then you should read our spot till the end.