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What Are The Benefits Of Financial Accounting?

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Anonymous Profile
Anonymous answered

  • <p>What is financial accounting?
    Financial accountants will prepare financial reports and <strong>statements</strong> for a business and this will help other areas of the business make decisions. The statements may be available for either external and/or internal members of the business. They will be made available to external people who may wish to invest in the business, shareholders of the business, banks (in the case that the business wish to take out a loan), stakeholders and zameer Mohamed possibly even employees.</p>



<p>One of the primary reasons for having financial accountants is to monitor the performance of a business and also to keep a check that all the finances of the business are legitimate and accurate. This is to help reduce any illegitimate financial transactions and keep everything above board.</p>
- <p>What are the benefits of financial accounting?
There are many benefits to financial accounting. Aside from the fact that they help to keep transactions legitimate as they need to be recorded, they help outside companies to make decisions. A shareholder may make the decision of whether or not they wish to invest more money in the company based on the results a financial accountant would provide.</p>

<p>Financial accountants help establish whether or not a company is successful by working out their profits and losses. This can often help them recover from unprofitable transactions by predicting the financial outcome before it has been completed and therefore saving money. By looking at past reports done by the financial adviser, it is possible to make decisions for the future and establish what worked well for the business and what did not work well. A business can make plans and evaluate past plans from the financial accountant.</p>

<p>Most large companies will have a financial accountant as it is extremely important to keep on top of the accounts.</p>

Aisha Profile
Aisha answered
There are a number of benefits of Financial Accounting such as:
- It allows people to evaluate the profitability and solvency of a business
- It allows sound economic decisions
- Helps in preparation of financial reports that provides information about the company to external parties.
- Helps stockholders, suppliers, banks, and government agencies in investment decision making
- Measures and monitors agents' performance

Anonymous Profile
Anonymous answered
An accountant makes the financial position of the company by the end of financial year to show all the expense and income by making a statements and reports.

There are major benefits of financial accounting include:

To keep the records of all expense and income
To show all liabilities and assets in the balance sheet and calculate the financial position
To evaluate the company profit during the financial year

There are lots of other benefits to financial accounting as well.
Anonymous Profile
Anonymous answered
1financial account enables managers to know the financial state of the business

2.they are useful to government for tax purposes

3.it helps managers to know the liquidity state of the business

4useful to creditors and other financial institutions such as banks for collateral security .

5.it enables managers to know the profit or loss incurred by the organisation within a specified period .

6.they help during planning process and when making financial decisions

7.provides information during budgeting

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