When a business wants to know its financial position, analyse its cash flow, determine the health of its operations, or understand its competition, it typically turns to certain branches of accounting. Small- to medium-sized businesses may use the services of one specialized accountant while big business and governments may work with an accounting firm that houses multiple finance departments to handle specific areas of accounting. Accounting branches work to the measure, process and communicate financial and non-financial information that affects a business’s economic interests and associations. Accounting branches record business events and transactions, then translate that information and present it to managers, stakeholders or whoever has a financial interest. The very objective of accounting is to provide accurate, reliable and timely financial information to the various stakeholders of the business. The intent is to enable the users of accounting information to interpret the results of business operations, ascertain its financial position, solvency and undertake rational decision making.

John U

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