The Role of Accounting in an Organization

V.P. Eranga Lahiru HND BM- 18 Batch E005970 Introduction Accounting is a necessary characteristic in any organization, offering a systematic way of recording, examining, and reporting monetary information. The motive of accounting is to grant correct and dependable monetary records that help corporations make knowledgeable decisions. In complicated working environments, accounting is even more vital as it presents vital facts about the economic overall performance and fitness of the organization. It plays a crucial role in providing stakeholders with insights into an entity's financial performance and position. What is Accounting? As defined by Weygandt, Kimmel, and Kieso in "Financial Accounting: IFRS Edition" (2019), accounting encompasses both financial and management accounting. Financial accounting produces external financial statements, such as the income statement and balance sheet, for stakeholders like investors and creditors. Management accounting, on the ot...