The importance of accounting in building a business. Accounting and business are two things that cannot be separated. As an entrepreneur, you are required to understand both. Perhaps many people still don't know that in reality accounting has a very important role in the business world. For these reasons, we cannot deny that the existence of accounting is very much needed in the business world.

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Accounting is a function in an organization that is tasked with systematically and reliably recording, processing, analyzing, and interpreting all financial transactions in the company's operational activities. From the above definition, it can be concluded that accounting is an activity of processing financial data starting from: Recording raw calculations, Identification of transactions and Financial analysis. From these data, they will later be arranged into financial reports.

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Accounting is responsible for calculating and analyzing financial flows in an organization or company. Of course, from the tasks carried out, there are many benefits felt by the organization or company, including:

1. As a Financial Control Tool
Accounting is used by companies as a financial control tool.

Accounting reports contain information about the company's profit and loss, which report is a mirror for the company or organization to control the money available.

This is done so that bankruptcy does not occur.

2. Become the Basis for Managerial Decisions
Financial information is a benchmark for companies to make decisions, whether big or small.

Financial conditions are something vital in a company, when management is required to make decisions in a short time, the first data that must be seen is the financial report.

3. Managing Human Resources
Human Resources or HR are a company investment. Without HR, it is impossible for a company to run and make a profit.

For this reason, in practice, the addition or reduction of resources can be decided using accounting data.

4. External Party Information
A company certainly cannot stand alone in building a business. When it needs capital injection, investors are their main target.

Financial reports are part of the portfolio for investors who will later provide capital injections.

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5. Evaluation
Financial reports are made in a certain period, whether monthly, quarterly, or annually. This report is used as a material for company evaluation.

Expenditure data to income illustrates how far the business can grow in that period.