Financial Accounting is a systematic tracking of company’s financial transactions. The transactions are recorded, summarized, and presented in Financial Statement of Accounts which is a technical publication which provides a view of the income and expenditure for the year. Financial accounts are part of the company’s accounting system. Companies often use accounting as a way to keep score.
Benefits For Your Business –
Following are the characteristics features of Financial Accounting :-
1. Cost accounting views the whole organization from the individual component of the organization like a job, a process etc.
2. Cost accounting aims at ascertaining the profitability of individual components of the organization.
3. It is meant for those people who are part of the decision making process of the organization. Thus, it is only for internal use.
4. It is not a legal requirement. It is not compulsory to maintain cost accounting records.
5. In Cost Accounting, data is immediately available which facilitates in decision making process.
6. Cost Accounting considers each and every transaction, whether related to past or future which will have an impact on the business.
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