What is the purpose of accountancy?

The purpose of accountancy is to accurately record, analyze, and report financial information of individuals, businesses, and organizations. It enables stakeholders to make informed decisions by providing reliable information on the financial health, performance, and position of an entity. Accountancy ensures that financial records are maintained in compliance with relevant laws, regulations, and accounting standards. It also assists in assessing the profitability, liquidity, and solvency of an entity, facilitating financial planning, forecasting, and budgeting. Additionally, accountancy plays a crucial role in monitoring and detecting fraud or unethical financial practices, providing transparency and accountability in financial reporting.

This mind map was published on 18 September 2023 and has been viewed 61 times.