Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
Introduction
We currently live in a society based on information and knowledge, using a wide variety of information. Within this accounting universe there is a vast world of financial information that tries to reflect the reality of economic organizations. However, in order to understand the importance of financial information, it is necessary to have knowledge of its usefulness and benefits for decision making.
While it is true, the basic purpose of accounting is to provide useful information about an economic entity, to facilitate the decision making of its different users (shareholders, creditors, potential investors, clients, administrators, government). Considering that accounting serves a set of users, several branches or subsystems originate from it, each one in particular with a purpose aimed at providing economic results of a given organization.
It should be noted that decision making by economic subjects requires relevant data about the facts to be decided upon. And although there is no doubt that sometimes fortunate decisions can be made based on intuition, it is no less true that for a specific economic reality, the possibilities of making reasoned decisions will be much greater if there is reliable and relevant information about that reality.
On the other hand, information is an essential resource for reducing uncertainty in business decision-making, and in order for it to be used correctly, it is necessary to establish an effective financial accounting process that transforms the multitude of data generated by the company's economic activity into useful testimony that facilitates this process.
It is important to emphasize that accounting is currently the most effective and useful information system for preparing and communicating economic information on the productive activities of companies. In this context, financial accounting represents a process aimed at supporting the organization's strategy and will also be a powerful tool for business competitiveness.
In conclusion, this accounting process guarantees the presentation of real financial statements to stakeholders, and also ensures detailed knowledge of the economic reality of a given organization through efficient processes in the accounting management of all transactions that guarantee the safeguarding of assets and the optimization of resources.
I hope you like my article and I would appreciate all your comments.
bibliography consulted:
1.- Brito, J. (2007). Financial Accounting. (8th ed.) Editorial Centro de contadores. Caracas, Venezuela.
2.- Infante, A., and López, Y. (2016). Financial Accounting for Decision Making, Zulia State. Venezuela.
Greetings@ amestyj you are right, if accounting records are not kept we would not have accurate knowledge of income and expenses to make the right decisions for the benefit of the organization.
Thank you very much for your comments
Greetings @dgalan, accounting information is important for any entity or company because through this relevant decisions are made in any aspect of it, making decisions without information that is really real can make the decision to be taken is not the right one.
Thank you for sharing this type of information.
Greetings friend @carlir, accounting decisions are made based on the information provided by the financial statements that are the reflection of the finances of the organization, to do so without taking into account this information would be very dangerous for the future of the organization.
Hi @dgalan, financial records are key for a company to sustain an orderly and sustained growth over time. I included your post in my TOP 3 - Review of Business Content, you can access the post at this link: https://hive.blog/blog/@alaiza/my-top-3-review-of-business-content-report-1
Greetings@alaiza, Financial reports are essential for decision making and to inform about the real situation of the companies.
Thank you very much for including my publication in your TOP 3, it is an honor for and inspires me to continue sharing my knowledge with everyone.
Happy afternoon