Accounting and Accountants
Accounting is a very important part of any business. As an entrepreneur, you either do it yourself or get someone else to do it for you.
When you are first starting, the only form of accounting you’ll ever meet would probably be record-keeping and bookkeeping. This is the part where you record the sales you’ve received and the expenses you have made using receipts, invoices, cheques and other transactions source documents.
What is accounting?
For most people, accounting does not concern them because they think of it as a laborious activity performed by people who are ‘good with numbers’. Accounting is often confused with the narrow concepts of record-keeping and bookkeeping.
Accounting of course is much broader than that. “Accounting is the system that measures business activities, processes that information into reports and communicates these findings to decision-makers”. The accounting system produces financial statements that report on an individual’s or an organization’s business in monetary amounts.
Who Uses Accounting Information?
All businesses – big or small – use accountants. If you don’t use an accountant for your business and do it yourself then you will need a good understanding of the accounting system and what your government requires of you.
Types of Accountants
Private accountants – These work for single organizations. They may perform cost accounting, budgeting, information systems design, internal auditing, financial accounting and management accounting;
Public accountants – These serve the general public. They may perform specialized services such as auditing, tax accounting and management consulting.
For small business owners, the areas that would occupy most of your time is financial and management accounting. Financial accounting provides information to people outside the business including creditors and the government for tax purposes. Management accounting generates information for you, the person who manages the operations of the business. This will produce how much you are spending on manufacturing your products or providing your services in a way that you can see where you are lacking and where you are doing well on.
Bass Coast Trade Directory is a trade directory for the Bass Coast Area and the trade people that work in the area.