What is accounting? »Its Definition and Meaning [2019]

Accounting is a technique, born to meet the needs of organization in the economy .Accounting is a practical, broad-spectrum disciplinary tool that uses precise methods and statistics to calculate accounts.The accounting is responsible for collecting any data or figure considered relevant, since even the smallest detail can alter an expected result.

The accounting area of ​​a lucrative company is responsible for yield as available capital can be used.As a savings tool, accounting is a feasible and necessary technique in the organizations that direct capital.The complex mathematical system used by accounting covers a wide range of devices and materials among which the statistic, financial mathematics, marketing study, mathematical analysis, production control, tax control, and even ethics collaborate in the good vision and group progress of the one who applies it, among others.

Accounting is also present in state institutions, government entities and private nonprofit organizations, but unlike private companies , accounting is applied for the fair distribution and use of national assets and resources.Accounting plays a very important role in the development of a country, its deliberate application, can bring negative consequences to the economy, whose impact is reflected strongly in poor classes and low-income families.

But not only accounting is employed in large companies or state institutions, when in a family nucleus , parents manage and write down the expenses of food, education, transportation and recreation, they are using a historical accounting method which allows them to account for expenses and adjust accounts to lead a quiet life « Economically speaking »

That is why accounting is important, since cost control is crucial when it comes to having responsibilities and executing plans.A family, an institution or an efficiently managed company , may execute social welfare plans, just as families with effective accounting can plan vacations in addition to normal expenses, a company can invest in productive growth and expand its earnings prospects .