Key objectives of accounting
The three key objectives of accounting are as follows.
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Record keeping
The fundamentals of accounting include record keeping which is the primary function of
accounting. A business must use standard forms of storing and retaining information so it can
be retrieved when the need for it arises. Thorough and accurate storage of records is essential
for all transaction-related purposes. A software package such as TallyPrime can be utilized to
store every transaction that takes place.
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Reporting
Financial reporting is a key accounting objective after record keeping. Accounting enables
businesses to record and report their financial status at the end of a particular period. It involves
putting together transaction details and reports that are necessary to make sense of a certain
aspect of a business during a specific time period. Financial statements are results of
aggregating financial information of a business and these are useful tools for reporting the
financial parts of a business.
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Analysis
The reports which are based on the business records are analysed in accounting. When
business health needs to be determined then the business reports are analysed. Analysis in
accounting enables accountants to find out ways to improve business efficiency, upgrade
processes, and to see where unnecessary expenses are being made. Analysis of financial
reporting allows your business to run without problems as it ensures no discrepancies are
found.