The Role of Accounting in an Organization

By Dulari Ekanayake  Esoft Metro Campus - Gampaha  HND Business Management  Unit 05 - Accounting Principles  Introduction Accounting plays a crucial role in providing accurate and reliable financial information to stakeholders in complex operating environments. The purpose of accounting in such environments is to ensure transparency, accountability, and effective decision-making for both internal and external users. This helps organizations navigate the challenges and complexities of their operations while maintaining trust and integrity. (Woods, 2019) What is Accounting? Accounting involves the systematic recording of business-related financial transactions. This process encompasses summarizing, analyzing, and reporting these transactions to regulatory bodies, oversight agencies, and tax authorities. (J. Fernando, 2023)  Benefits of accounting in solving current problems: Enhanced Transparency: Accounting ensures transparency by accurately recording and reporti...