Accounting plays a vital role in the success of any company/organization no matter whether small or large. Accounting gives businesses all the practical information on all transactions so that they can make the best strategic decision.

With proper accounting activity, it becomes easier to measure the increase and decrease in sales(performance,profit,Growth) and take timely action that will benefit the business. Without proper accounting information, a bad decision will be made & it will adversely affect the whole business. However, there are some basic accounting skills which will be considered as a prerequisite to execute accounting. becoming a successful accountant.

Here are  some advantages of accounting which we will discuss over here:

  1. Effective Management.

The most effective role of Management Accounting is budgeting. … Before we send the final report to the owners, before that it ensures accuracy of all information gathered to help in perfect decision making. Business technology software plays the most important role nowadays in preparation of financial records, their forecasting & analysis. It is also known as cost Accounting. It helps to manage, prepare & analyze all the right information to help achieve business goals.

2.   Organization.

Accounting is at that point of stage to ensure equality and honesty in financial reporting. Through the process of standardization in accounting, it prevents the exploitation of existing financial systems. Accounting plays a vital role even in the easiest financial activity of paying one’s monthly bills.

3.   Reliability.

The rule of accounting reliability principle concerns the financial statement of a business, and it states that the information presented in the accounting statements and records should be the most accurate and reliable information available.

4.   Taxation.

It is a system by which a government collects or impose charges on citizens and corporate entities to finance it’s losses & expenses like defense, welfare (Education, Corporate Infrastructure, Healthcare) etc. it’s a compulsory payment which is paid to the govt under any law. It may be charged by the government on goods, income or other activities. In taxes, there are another points which we’ll discussed further:

  • CGST means Central Goods and service Tax. it’s covered under Central Goods and service Tax Act 2016. Taxes collected under CGST are the revenue for the central Government. The payment done within the state like: Maharashtra to Maharashtra, then it’ll be considered as CGST i.e. Central Goods & Service Tax.
  • SGST means State Goods and service Tax. it’s covered under State Goods and Service Tax Act 2016. a group of SGST are the revenue for the government.
  • IGST means Integrated Goods and service Tax. IGST falls under Integrated Goods and service Tax Act 2016. Revenue collected from IGST are divided between Central Government and government as per the rates specified by the govt.
  • TCS is the tax payable by a vendor in which he collects from the buyer at the point of sale. Section 206C of the Income-tax act governs the goods on which the vendor has to collect tax from the consumers.

5.   Accounting Software.

Today, there is automation in all types of corporates. It is mainly concentrated around data mining, computations, developing and interpreting complex models, etc. It is a software-based application enabling more accurate and reliable financial record keeping. Accounting softwares such as Zoho Books, MARG ERP, TallyERP and more are getting used on a daily basis.  So there is an increase in demand for an accountant with an accounting software skill set.

It is essential to manage all the software skills along with basic accounting skills, customer service and communication skills. An impeccable combination of all these skill sets is important to become successful.

6.   Analysis.

It is a process in which detailed items in a financial statement or transaction are carefully examined for a given account, often by trained accountants or auditors. An account analysis can help us by identifying the trends or give an indication of how a particular account is performing.

7.   Reporting.

It is a periodic statement that represents the financial status of an organization at a certain point of time. It presents the business transactions and operations. They are a compilation of financial information that inter from a business’ accounting records.nds or give an indication of how a particular account is performing.

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