Financial Accounting Practices and Their Role in Organizational Reporting and Decision-Making

Abstract

One kind of accounting is known as financial accounting, and it is the process of recording, summarising, and reporting financial transactions that are the outcome of corporate activities that take place over a period of time. The preparation of accounts, which include the balance sheet, the income statement, and the cash flow statement, all of which reflect the financial results of the company over a specific period of time, is where such activities are documented for posterity. Accounts include the balance sheet, the income statement, and the cash flow statement. The role of a Financial Accountant may be found in both the public sector and the private sector of the economy. A general accountant is someone who works for themselves rather than for a corporation or organisation, hence the obligations that come with that role are different from those of a financial accountant. It is highly crucial for all kinds of companies, regardless of whether or not they are major organisations. Accounting refers to the practise of documenting a company's financial transactions in a systematic and organised manner. The process of accounting include summarising, assessing, and reporting these transactions to the relevant oversight authorities, regulatory bodies, and tax collecting institutions. “The financial statements that are used in accounting provide a condensed overview of the financial transactions that have occurred over the course of an accounting period. These statements also provide a summary of the activities, financial status, and cash flows of a firm. Accounting is one of the most important roles for almost any kind of company. In a smaller company, it may be managed by a bookkeeper or an accountant, however in a bigger company, it may be handled by vast financial departments consisting of hundreds of personnel. When it comes to assisting management in making educated choices for the company, the reports that are provided by the different streams of accounting, such as cost accounting and managerial accounting, are of incalculable value.