what is accounting ? limitation and objective of accounts .

Accounting definition

Accounting is the very  important part of any successful business. It records all profits, losses, credits, and debts.

we can deduce  accounting is  important not only in businesses but also in the lives of individuals.now a day's accounting is very important our business and anywhere .

It  is used to prepare accounting information for people outside the organization or not involved in the day-to-day running of the company, managerial accounting provides

It’s help managers make decision to manage

Types of accounting

Financial accounting

Management accounting

Cost accounting

Tax accounting

Government accounting

Healthcare accounting

Auditing

financial accounting -

Financial accounting is a  branch of accounting that keeps track of a company's financial transactions. Using the transactions are recorded, summarized, and presented in a financial.

its statements use for public consumption. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders .

financial accounting very important part of accounting .if we do any business financial accounting is important .

Management accounting-

management account is the information collected with the help of financial accounting ,management accounting Developing the business  and managing the performance of the organization

Management accounting is the decision making, devising planning and performance management systems,and providing expertise in financial reporting and control to assist management.

 it is  responsible for managing the business team and at the same time having to report relationships and responsibilities to the corporation's finance organization.

management accounting manage the business accounting .management accounting used to different -different industries.

Cost accounting-

Cost Accounting and Management Accounting  and  management making decisions and in the planning and control of an organization. Its  helps the business  & the cost of production/services offered .

cost accounting  establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds. Tax accounting.

Tax accounting is  tax returns and payments rather than the preparation of public financial statements. Income Tax is usually taken out of wages and pensions automatically. However, if you are self employed, have an income of more than £100,000, .you pay income tax
.

Government accounting

Government accounting used to public sector where most transactions are accounted for as a single entity,government accounting  .A government accounting is very useful the public sector as self-balancing accounts are responsible for managing resources that are assigned to specific purposes based on regulations and limitations.

read more :10 Things to Look for when Hiring an Accountant

Healthcare accounting

Healthcare organization, the most important factor within the setting is the patient's overall satisfaction while allowing the accounting department to operate financial functions .

Limitation and objective of accounting

Limitation

1. Accounting statements are influenced by the personal judgement of the accountant.

2. Accounting maintain the accounts .

3. Accounting system to  maintain the systematic recording to such public properties.

4. It provides all financial data.

Objective -

It provides the financial data to the government for preparation of annual budget.

Accounting need to maintain  permanent records .

Accounting is to maintain a full  record of all business transactions.

Accounting by preparing Profit & Loss Account or Income Statement.

To provide accounting information to the interested parties.

Accounting information to help managers make decision to mange.

The accounting information is made available to them in the form of annual report.

Signification of  accounting

1-Accounting is the most important part of any successful business.

2-It records all profits, losses, credits, and debts.

3-. Accounting uses various forms for their proper recording.with the help of accounting manage the budget system