I need help with the following question:
Discuss how knowledge of accounting is vital to the success of a business. Some specific functions that you might want to include are internal auditing, external auditing, managerial accounting, taxation, knowledge of GAAP, and safeguarding assets.
I also need references.© BrainMass Inc. brainmass.com September 29, 2022, 1:01 pm ad1c9bdddf
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Knowledge of accounting is extremely important for successfully and efficiently running a business because good knowledge of accounting helps an owner to correctly assess the financial position of an organization, its profitability and allows him to allocate limited resources in the best possible manner.
Accounting areas such as managerial accounting and internal audit helps the owner to identify areas of strengths and weaknesses as well as help in uncovering frauds, manipulations and errors in accounting. Knowledge of GAAP principles, taxation and audit helps the owner and his managers to comply with laws and regulations pertaining to financial reporting, accounting and taxation in the organization.
Accounting helps the owners to exercise proper control over its finances, safeguards assets of the organization and manage working capital of the firm in a more efficient manner. It helps the owners to make informed and timely decisions about the day to day working of the organization. Accounting helps the organization's owners in assessing the performance of the organization in comparison to other organizations in the industry. It helps in taking corrective measures or strategic actions to improve the performance of the organization.
Reference: http://smallbusiness.chron.com/role-accounting-business-459.html© BrainMass Inc. brainmass.com September 29, 2022, 1:01 pm ad1c9bdddf>