THE BENEFITS OF FINANCIAL ACCOUNTING

       Accounting is one of the social science subjects that is studied in secondary school high schools), polytechnics, universities and other tertiary institutions. The benefits or importance of this course or subject is so great that you hardly see any higher school that does not offer the course. But before we look at the benefits of this indispensable course called accounting, it will be imperative to get the overview and the definition of accounting.

     In any society, individuals, group as well as nation make economic decisions , which may entails exchange of goods and services at agreed price and money is use to assign value to them. Because of the continuous need to price or even measure goods and services, this is where accounting comes in. Accounting responds to the need for quantitative and in particular financial information.

 Therefore Accounting can be defined as the process by  which data relating to the financial and economic activities of an individual, organization or the nation are recorded, measured and communicated to interested parties for analysis, interpretation and use

The benefit of studding accounting to individual is that it will give him adequate knowledge of financial and monetary issues. It makes him or she has wider or broader views of what money is all about and facilitates means of acquiring and using it judiciously. If one study accounting and engaged in business it helps him to keep accurate record of his transaction. It will enable him to determine the  value of his asset and liabilities. Also for any person that qualifies as accountant, the sky is his limit, he can work in any iorganization, because there is no sector of economic life that accounting are not needed. Accounbtants are respected people in the society. They can work in financial institutions, the military, hospitals, schools Etc.

The wide use of accounting makes the accountants less vulnerable to unemployment As a chartered accountant you can be self-employed by opening  your chartered accounting firm. ‘An enterprise or organization also derived immense benefits from accounting. The sole-proprietorship, the partnership and the big corporations, all make use of accounting. They use accounting to prepare financial records and other financial statements such as Trading Account, Profit and Loss Account and the Balance sheet. These accounts are prepared to determine the profitability or otherwise of a business. It is also use to produce information that will help the public to form an opinion about the financial standing of an organization.

 To the government, the benefits of accounting can not be over-emphasized. The governments make use of accounting in the determination of balance of payment, gross domestic products, gross national products. Government makes use accounting in preparation of budget and other financial statements’