How does Accounting Affect the Stability of a Business?

An organization must account for every penny that comes in and goes out if it is to maintain steady expansion and long-term viability. Accounting is critical to the stability of any business because it facilitates the gathering and analysis of quantitative financial data; accurate recording of financial transactions, verification of legal requirements, and the distribution of useful financial data that can be used by investors, managers, and regulators to assess a company's financial health and guide strategic decision-making. Without accurate accounting and bookkeeping, a company faces the danger of mishandling its funds and ultimately failing. ...Read More

6 Key Objectives of Ratio Analysis

It is necessary to do an analysis of the company's financial statements after they have been prepared. Ratio Analysis is a useful tool for assessing and analyzing a company's financial health. Stakeholders can gain a deeper understanding of the financial position and performance of an organization by employing ratio analysis. Attribution: The icons has been designed using resources from Quick Recap Ratios are a useful mathematical tool for illustrating the relationship between two numbers. Ratio Analysis is used to analyze and evaluate financial statements.   Let's get deep into ratio analysis.   ...Read More

Relationship between Studying Accounting and Economics

Both accounting and economics are required courses for every business degree. You may wonder whether they have any connection at all. If economics is related to everything, then what is the point of learning accounting? Both accounting and economics need significant use of calculations. Yet economics is focused on production, consumption, and resources, accounting is a profession dedicated to documenting, analyzing, and reporting financial transactions.   Attribution: The icons has been designed using resources from     Why should I study accounting? Professional accountants are a vital part of any company. An ...Read More

How do Financial Statements Help with Decision Making?

In today's unstable economy businesses are tasked with making constant decisions that require careful analysis in a fast past environment. Understanding financial statements allows stakeholders to have access for information related to the business which allows the business to improve its operational efficiency, reduce costs and raise capital. Understanding the different types of financial statements and how to decipher the numbers within them is crucial for making informed business decisions. Attribution: The icons has been designed using resources from Quick Recap: Three Financial Statements  There are three primary financial statements that are ...Read More

5 Reasons Why do Accountants Should Learn Python

Due to growing amount of data, there are a less tools that can help accountants do the necessary analysis. Additionally, these technologies don't cover the whole process, and can't be automated. On the other hand, programming languages are free, and analysis is a repeatable process. For accountants, Python is a user-friendly programming language. It is an essential method for processing data and conducting statistical analysis.    Attribution: The icons has been designed using resources from The initial release date of Python was February 20, 1991. In recent years, its popularity has significantly ...Read More

4 Reasons Why Accounting is Important in Everyday Life

Using accounting is indeed synonymous with businesses. Nonetheless, accounting for personal finances is also crucial. The objective is to manage or document our finances so that they stay stable and can be expected to advance. The significance of accounting in our everyday life is evident throughout, from monitoring our expenditures to utility bill payments to shopping. There’s a good chance you’ve already utilized some fundamental accounting concepts already.   Attribution: The icons has been designed using resources from   In this article, you will gain an understanding of the significance of accounting ...Read More

4 Ways on How Accounting Helps in Decision Making

Accounting is important because it allows companies to keep track of all of their financial transactions. It is the method through which businesses record and analyse the financial data that flows in and out of their operations. It allows both corporate executives and outside analysts to assess the firm's sustainability and make informed decisions. Accounting uses data from your operations to generate reports that give you and your managers continual insight into business performance, so you and your managers can make informed decisions.   Attribution: The icons has been designed using resources from ...Read More

3 Tips on How to Analyze Liquidity Ratios

Analysing your liquidity ratio is essential, especially when determining your financial metric covering short-term obligations, creditworthiness, or investment worthiness. With that in mind, here is a helpful guide that will help you understand and analyse liquidity ratios quickly.   Quick Recap But before that, let's go back and define what a liquidity ratio is first. Liquidity ratios are defined as the means to determine the credibility of a company and its ability to pay back debts accordingly on their short-term due dates. Now, here are the three types of liquidity ratios to remember, which include ...Read More

Is Accounting Just Like Math? 4 Difference Between them

Mathematics and accounting have always been acquainted with each other, so they are sometimes thought to be similar. They both include numbers and computation, but math and accounting are two different concepts with different approaches. Most of the time, the common conception about these two concepts is saying that accounting is just like math. Accounting may include some computations and use equations included in math, but it is not as complicated as math. It does not usually involve some nerve-wracking calculations, just the fundamentals of mathematics and some excellent analysis of problems. Additionally, in accounting, ...Read More

September 25, 2021|Accounting, Accounting Discussions|

8 Accounting Assumptions Every Accountant Should Know

When it comes to preparing a financial report for any organisation or firm, there are some theoretical assumptions that all accountants must follow. Accounting assumptions are very important for laying the foundation of consistency so that they can be used for assessing the reliability of the financial documents of a business firm while ensuring that the financial health is described therein.   8 Accounting Assumptions That Help in Business   Attribution: The icons has been designed using resources from   Going concern With this assumption, accountants assume that a business should ensure ...Read More

September 15, 2021|Accounting, Basics of Accounting|