What should have accounting information?


In order for accounting information to comply with what has been programmed and can serve as a reliable source of information as a basis for decision making, it must meet certain requirements and have certain characteristics.Rise school is Best School of Accountancy in Lahore.CA admissions in Lahore now open. The best School of Accountancy in Pakistan offers CA in Lahore and Best CA in Pakistan.
According to article 4 of Decree 2649 of 1993, which sets out accounting principles generally accepted in Colombia, accounting must have the following characteristics:
"In order to adequately meet its objectives, accounting information must be understandable and useful. In some cases, the information is also required to be comparable.
  • Information is understandable when it is clear and easy to understand.
  • The information is useful when it is relevant and reliable.
  • The information is relevant when it has feedback value, prediction value and is timely.
  • Information is reliable when it is neutral, verifiable and to the extent that it accurately represents economic facts.
  • The information is comparable when it has been prepared on a uniform basis. "
According to Decree 2649, it all boils down to the fact that accounting must be understandable, useful and comparable.
Hence the importance that the company or the entrepreneur design an accounting system that allows it to fully develop its qualities. Ideal to have a complete and efficient ERP.
Today, as it is designed, almost all accounting software guarantees a good deal of the development of the qualities that accounting must have, but for this, healthy accounting policies are required and aimed at precisely the accounting can count on the necessary tools For the fulfillment of its objectives.
Perhaps one of the most unobserved qualities of accounting is utility. In our environment it is customary that accounting take a delay of one month or even more. In these conditions, accounting is very unhelpful, as it will never give the entrepreneur the information he needs to make decisions.
In many companies, accounting is only useful to meet tax obligations, but not to serve as a support in decision making, since it is always late, and in addition, it is not interpreted or analyzed. The businessman is given some balances that although they can be elaborated correctly, will not serve you if you are not explained that represent.
It is possible that for the accountants, this is understandable, but not so for the administrative staff. To this it is necessary to explain to him that they mean, that they represent all those numbers, otherwise it will be completely useless to them by not understanding their meaning.

To the extent that the accountant ensures that his accounting complies with the qualities that are his own, allowing the application to accounting programs will be given added value to the client and therefore will be the degree of satisfaction of this and surely someday the Entrepreneur no longer see in the accounts an expense that only serves to comply with legal requirements.

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