Accounting, the language of business, is a service activity that functions to provide financial information significant to organization's decision making functions. Its purpose is not limited in recording quantitative data but also in summarizing and communicating relevant, reliable, and impartial reports suited to the needs of the users.
One of the users of accounting information is the management. Management plans, organizes, and controls the affairs of a business. Accounting is its system of communication. It uses information to effectively perform its basic functions. Most of the time, the management needs accountants for observing methods of plans and controls throughout the enterprise and for proposing improvements thereto. For instance, the controller, an accounting executive officer, advises managers some corrective actions regarding operational and financial aspects in business and on the fairness of the presentation and preparation of its financial statement.
Money is the lifeblood of business--accounting deals mainly with money. Without accounting, an organization can never survive. Management considers not only social responsibility but also profit accumulation and financial plans for the business to continue. That is why accounting is very essential to management.
Carter, Cost Accounting, 14th Edition
Valix etc., Theory of Accounts, 2010
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