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Accounting Terms and Concepts

In: Business and Management

Submitted By nathanjosiah
Words 490
Pages 2
Accounting Terms and Concepts
Student Name
BSA/301
Instructor Name
11/30/2013

When first starting a business it can be challenging to keep all records of financial transactions that are performed. It is important to do so because not doing so can leave you in a place of uncertainty and can lead you to make some financial decisions that can hurt you. If the records that have been kept weren't accurate or complete it would be hard to determine how much money is actually available for spending.

As your business continues to grow it becomes increasingly more important to keep close and accurate track of your finances. Not just money spent but all aspects of your financial information. This includes but is not limited to: spending, revenue, liabilities, property, loans, personal investments, and asset degradation. All of these assets must be considered to have a proper understanding of the state of the business. This is not just important to your perception but to those that may own your business such as stockholders. Should the situation arise that somebody wants to buy your business and you are interested in selling, they may not be able to see the true success of your business without the proper tracking and status of your financial information and that would greatly affect the chances of the business being sold.

The good news for you is that modern accounting systems make it incredibly easy to keep track of all of this information. Many programs are able to compute much of the information that would be needed as well give valuable insight as to the true state of the business. These systems that are available have been shaped over time due to the use of complex IT systems that need to be able to track very precise elements of finances that are measured in real-time by many different systems. Real-time integration is not just important in a complex IT...

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