Accounting functions in forming decision making and meeting stakeholder and societal needs and expectation

Well, every works of accounting are aiming to run a business successful. So that we need to understand correctly what the accounting functions are and how they forming decisions making and meeting stakeholders need as well as societal or expectation.

1 Accounting role 

There are about 7 accounting function:

Accounting is borne to support the stakeholders, customers or holders to make the best decision and manage the company activities as well as possible. the accounting system is aiming to provide the financial information concerning for the whole company. The information includes the financial situation and the company's performance and then intended to the users to making decisions. 

2 Accounting function impacts

• Management Accounting

It is a type of accounting which observes the whole company performance and identifies the opportunities which can improving the company finance.

It also prepares the internal report of the company and then makes the best business plan. That it helps the organization to run company and manage it.

•  Financial Accounting

Include bookkeeping, identifying, classifying, summarizing and recording in order to state the financial transactions. It is a proof for the users to understand clearly about a company.

• Internal Accounting

Help to managing directly the internal of the organization to develop its profits and others finance flows

• Taxation Accounting

To ensure that the return of taxes is advance paid. It creates a position as planning of taxes.

• Cost Accounting

This function helps the users to make decision about the amount or types of costs it incurs. It segregates and make lists about the components of costs that the organization need to seal goods or process the product to finish. 

In conclude, accounting is critical in decision-making and meeting the needs and expectations of stakeholders and society. Accounting financial information assists managers in developing budgets, understanding public perception, tracking efficiency, analyzing product performance, and developing short- and long-term strategies. To make sound decisions, stakeholders such as stockholders, creditors, governmental and regulatory agencies, customers, management and other employees, and various other parties and entities rely on unbiased, relevant, and timely financial information. Accounting also contributes to transparency and accountability, both of which are critical in complex business environments.

References:

Oana, P.G.– (2012) 'The role of accounting information in the decision making process,' ideas.repec.org [Preprint]. https://ideas.repec.org/a/ovi/oviste/vxiiy2012i12p1594-1598.html#:~:text=Accountancy%20can%20support%20the%20decision,the%20users%20to%20taking%20decisions.

Nigam, R. (2022) Accounting functions. https://www.wallstreetmojo.com/accounting-functions/.

  Thediamonddrives (2023) 'Multiply Your Skills With An Apprenticeship In Accounting Blog,' The Diamond Drives, 4 November. https://thediamonddrives.com/multiply-your-skills-with-an-apprenticeship-in-accounting-blog/.