One of the main functions of accounting is to help manage, analyze and be responsible for company finances.
In business, accounting is not only important in terms of recording and general business management, but also in order to follow applicable legal and tax regulations.
The following is an explanation of the meaning, types, benefits and functions of accounting.
Understanding Accounting
Accounting is the process of recording, classifying and summarizing financial transactions.
Lewat akuntansi, kamu bisa mendapatkan gambaran yang jelas tentang kondisi keuangan bisnis dan kinerjanya. Hal ini tentu saja dapat berfungsi sebagai katalis untuk manajemen sumber daya dan pertumbuhan strategis.
Accounting can be likened to a powerful machine, where you enter raw data (in the form of numbers) to get processed information (in the form of financial reports).
Jadi, berkat akuntansi kamu bisa mendapatkan gambaran yang jelas tentang posisi keuangan bisnis.
Are you making a profit or not? What is the cash flow, what are the company’s current assets and liabilities? As well as which parts of the business actually make money.
Fungsi Akuntansi
Accounting functions in business include the following:
1. Melacak Biaya Bisnis dan Pendapatan
An important function of accounting is to track business expenses in relation to revenue.
Just like managing personal finances, accounting will record expenses and payments to keep accurate and up-to-date records of company funds.
2. Tracking Accounts Receivable
Proper accounting ensures the company receives whatever payments are due.
It is an accountant’s job to track business profits by ensuring that income continues to flow into the company’s bank account.
3. Paying Business Debts
The function of accounts payable is to pay company bills and check that they are legitimate expenses.
Accounting also helps set payment due dates so companies can manage funds based on when the money comes in.
4. Payroll System
An accountant will deduct employee wages from company funds and administer employee benefits if paid from employee income.
So, accounting can help decide how employees are compensated for their work based on how wages affect a company’s profits.
5. Make Financial Reports
Accountants will generally use digital systems to store and calculate data.
If a company is publicly held, accountants must also prepare quarterly and annual reports for shareholders detailing the assets, profits and losses of the business.
Private companies also use fiscal reports like this to understand their company’s financial resources.
6. Make a financial analysis
Companies use accounting to conduct regular analysis of how well their business is performing.
Based on financial results, consultants will determine whether there are functions that can be made more efficient.
Consultants can also suggest changes to employee departments or create efficient production costs to reduce expenses.
7. Follow Taxes and Legal Regulations
The business you own must comply with government laws and regulations. So, the accounting function is responsible for reporting how the company’s finances work and ensuring they comply with all applicable laws.
8. Determine budgeting
Another function of accounting is the task of setting the company’s budget using financial data from the past as well as future income projections to prepare the annual budget.
Apart from that, accountants also prepare budgets for each department and special projects within the company.
9. Avoid Fraud
Accounting will ensure money is not mismanaged or wasted within the company.
So, accounting can protect company assets from internal and external fraud because accountants will examine financial data to ensure employees do not mismanage or embezzle funds for company or personal gain.
Purpose of Accounting
The following are some of the objectives of the accounting process:
- Provides financial information, including capital, expenses, and economic resources.
- Presents information if there are changes in the company’s economic resources.
- Memberikan informasi mengenai perubahan kewajiban perusahaan.
- Estimating a company’s potential profit based on financial reports.
- Menyampaikan informasi terkait laporan keuangan secara lebih rinci.
Why is Accounting Important for Small Businesses?
Even though your business is still small scale, accounting is still very necessary. Here’s why:
1. Helps Plan Growth
Every journey starts with a map, when you plan your company’s growth, it is important to set goals. What should profits look like a year from now, even five years from now?
Akuntansi akan membantumu tetap di atas keuangan bisnis. Informasi dari akuntansi penting untuk menilai seberapa cepat bisnis berkembang sehingga bisa menjadi panduan dalam pengambilan keputusan di masa depan.
Without accurate reporting, you will not have a complete financial picture.
2. It is Important to Secure the Loan
Up-to-date financial reports are very important if you want to fund your small business with a loan.
When you want to apply for a loan through a bank, you must provide financial reports for the past three years, plus one year’s cash flow projection.
It’s almost impossible for you to provide all of that if you don’t have an accounting system.
3. Attract Investors
You may not plan to look for investors right now, but it’s a good idea to always keep an open option. The best way to do this is to put a proper accounting system in place.
Certified accounting is needed by potential investors, stakeholders, or buyers to prove your business is profitable and on a growth path.
4. Helps Business Stay on the Right Track
As a business grows, it can be difficult to keep track of all tax information reporting obligations. Especially if there are errors in the financial reports that put you at risk of reporting your income incorrectly.
With solid accounting, you will have complete and accurate financial records, thereby reducing the risk of violating tax laws and possible audits.
So, if you use the services of an accountant to handle your taxes, make sure they do it accurately and on time.
Itulah penjelasan mengenai akuntansi, mulai dari pengertian, fungsi, hingga tujuannya. If you have difficulty carrying out accounting activities for your business, use the Labamu application.
Here there is a Report feature to monitor your business activities as a whole, with a Bills feature to monitor the status of outstanding and paid bills, as well as a Debt Book feature to manage finances more efficiently.
To make your business run more smoothly, let’s immediately download the Labamu application on Google Play or the App Store!
