Accounting is a science that studies the financial condition of a business or business which can be used as a basis for information in decision making which is utilized by internal and external parties of the company.
For companies, by looking at accounting information, in the form of financial reports, the company can make decisions related to evaluating the results of the company’s operations during one period, whether the company made a profit, or whether the costs incurred were excessive or not.
Apart from that, the company can also find out whether the company will seek funding sources by taking debt.
Meanwhile, for parties external to the company, accounting information can be used as a means of making business decisions.
For investors, accounting information can be used as a basis for making investments. For creditors, accounting information can be used as a basis for providing loans or debt. For the government, accounting information can be used as a basis for taxation for the public.
The information obtained is in the form of financial information in the form of financial reports about the company’s financial condition which can provide future business prospects.
This accounting information can be used by entrepreneurs or business people, starting from MSMEs, even open or public companies are required to make financial reports as a basis for accountability to issuers every year.