What is accountancy and also write …

REPUTATION AND CREDIT BUILDING Reputation and business credit scores can be improved by the simple act of establishing and operation a sound accounting information system in an organization. The belief is that any company that has the got to have an accounting system in place will be efficient in all other aspects of business operations.

PREVENTION OF FRAUD AND DISCOVERY OF FRAUD Frauds can only be discovered and prevented in an environment where there is good internal control in place. And a good internal control cannot be in place where there is no form of keeping track of events. Accounting and accounting information system is the only way of keeping track of all these in an effective and efficient manner. GETTING OF FUND AND LOANS You cannot get loan from financial institutions if you cannot present your financial state of affairs in an acceptable manner. Accounting as a communication tool obviously have generally accepted formats which financial institutions and banks use as a basis for measuring the risk of a business.

RECORD KEEPING No economy will stand well economically if records are not well kept and acted upon. Accounting is one of the primary vehicles of record keeping. Data are gathered from their various sources, collated, organized, analysed, interpreted and communicated to the end users for an informed economic decision making that will in the long run yield positive fruit. Countries are able to plan their economic activities are chiefly as a result of the valuable information gathered through all forms of accounting (making use of statistical tools). Governments use the records of companies to make fiscal and monetary policies.

ANALYSIS PURPOSE/ DECISION MAKING All our business and economically informed decision making are based on sound analysis of financial statement which is a product of accounting information system. Without a properly kept account, this objective will probably not been achieved and business executives will all be acting in blindness. Investors both current and potential base their investment analysis on accounting information. Information on: profitability, liquidity, efficiency etc are all obtained from the information provided by accounting information system

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Accountancy is the practice of recording, classifying, and reporting on business transactions for a business. It provides feedback to management regarding the financial results and status of an organization.