Why Do We Need Accounting?

So, Basically Accounting and Bookkeeping have been around for as long as humans have been engaged in trade and commerce. This makes sense, because if we want to do business with each other in any organized way, then we need a system to track all these exchanges. And for this purpose accounting comes for.

Needs Of Accounting-

Accounting is essential if you want to be able to grow your business in a way that can be measured and predicted. Having a system to track your business liabilities, assets, and income allows you to make smart, informed business decisions based on past performance and present the financial health of your company.

Delineation and development of Accounting.

In the year 2012, the Financial Accounting Standards Board (FASB) of the United States (US) took significant steps to come up with the International Accounting Standards Board (IASB), calling it 'international convergence' in the hope of gradually changing to normal. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) until they become one and the same to stream corporate / company reports in a uniform process worldwide. The reason for this was because there is no absolute certainty as to what the future holds for the Accounting profession.

Accounting and human development.

Accounting itself would outweigh the reality providing an accurate solution to financial problems, where man's ability to value natural capital would give rise to significant assets on the balance sheet in contrast to the industrial age, when He is also himself. The importance of the machines they operated was considered labor less.