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    Presentation On Importance of Accounting in Business

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    Md. Mohiuddin Rownak
    The document discusses the importance of accounting for business. It notes that while the entrepreneur has multiple successful businesses, there is no individual business data or tracking of profits and losses. Accounting is needed to properly track expenses, comply with tax law, support decision making, and ensure long term success. The document outlines the uses of accounting, components of a chart of accounts, and a framework for financial statement analysis.

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    Presentation On Importance of Accounting in Business

    Uploaded by

    Md. Mohiuddin Rownak
    25 views8 pages
    The document discusses the importance of accounting for business. It notes that while the entrepreneur has multiple successful businesses, there is no individual business data or tracking of profits and losses. Accounting is needed to properly track expenses, comply with tax law, support decision making, and ensure long term success. The document outlines the uses of accounting, components of a chart of accounts, and a framework for financial statement analysis.

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    Presentation on Importance of Accounting in Business

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    The document discusses the importance of accounting for business. It notes that while the entrepreneur has multiple successful businesses, there is no individual business data or tracking of profits and losses. Accounting is needed to properly track expenses, comply with tax law, support decision making, and ensure long term success. The document outlines the uses of accounting, components of a chart of accounts, and a framework for financial statement analysis.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    25 views8 pages

    Presentation On Importance of Accounting in Business

    Uploaded by

    Md. Mohiuddin Rownak
    The document discusses the importance of accounting for business. It notes that while the entrepreneur has multiple successful businesses, there is no individual business data or tracking of profits and losses. Accounting is needed to properly track expenses, comply with tax law, support decision making, and ensure long term success. The document outlines the uses of accounting, components of a chart of accounts, and a framework for financial statement analysis.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    The Importance of

    Accounting for
    Business
    Prepared For
    Dr. Md. Rashidul Islam
    Ph. D (DUFE), M. Sc (UK), MBA (RU)
    Associate Professor of Accounting, DBA
    East West University

    Prepared By

    Tofatul Jannat Mona


    Student ID: 2023-2-95-008
    Background Information of The Entrepreneur

    ▸ A very successful entrepreneur/businessman with multiple businesses.


    • Grocery Business
    • Worker Supply to Construction sites
    • Workshop for Electric Appliances (Fridge, Washing Machine & Air Cooler)

    ▸ Economic information available

    2
    Analyzing the Profitability of Businesses

    ▸ Only personal asset data provided.


    ▸ No individual business data can be tracked from the provided data.
    ▸ There is a risk of some business making loss as data is not tracked.

    3
    Need for Accounting in Business

    ▸ Highlight Financial Health.


    ▸ Decision-Making Support.
    ▸ Legal Compliance.
    ▸ Proper Taxation of Business.
    ▸ Setting Up Pension Fund for Em ployees.
    ▸ Business Growth.
    ▸ Track Expenses.
    ▸ Risk Management.
    ▸ Long-Term Success.

    4
    Uses of Accounting in Business

    ▸ Avoidance of the limitation of memorizing power.


    ▸ Compliance of Statutory provisions.
    ▸ Ascertainment of profit and loss of the business.
    ▸ Ascertainment of the financial position of the business.
    ▸ Assessment of Tax.
    ▸ Knowledge of Debtors and Creditors.
    ▸ Proper Valuation of Business.
    ▸ Evidence in The Court of Law.
    ▸ Assistance in Making Managerial Decisions.
    ▸ Development of Nation.

    5
    Chart of Accounts

    ▸ Asset Accounts: These accounts represent the resources and properties


    owned by the organization.
    ▸ Liability Accounts: These accounts represent the organization's
    obligations or debts to external parties.
    ▸ Equity Accounts: These accounts represent the owner's equity in the
    organization, including investments and retained earnings.
    ▸ Income Accounts: These accounts record the revenue generated by the
    organization from its primary activities.
    ▸ Expense Accounts: These accounts record the costs and expenses
    incurred by the organization to generate revenue.

    6
    Financial Statement Analysis & Framework
    The financial statement analysis framework consists of the following six steps:
    ▸ Define the purpose and context of the analysis.
    ▸ Collect data.
    ▸ Process the data.
    ▸ Analyze and interpret the processed data.
    ▸ Develop and communicate conclusions.
    ▸ Follow up.

    7
    Thanks!

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