Hcs 405 Essay

323 Words2 Pages
Why is it important that financial accounting systems report performance fairly and factually? It's essential for financial accounting systems to report performance fairly and factually for the reason that it will benefit decisions making, preparation, as well as setting performance standards aimed for certain time periods. This is an imperative development since it will permit management to analysis their system along with determine the most exceptional cost-effective plans to guarantee the right standing for the establishment or organization. Organizations require management accountants who work on financial reports that will demonstrate previous performance which in return since the source for short and long term decision making within an organization. The job entails budgeting, assessment, cost management’s, and asset management. Their work requires them to figure out solutions on where cutbacks should to be made and their job involves them to sustain quality while grossing a modest profit. They are accountable for the focal point of the company and their job involves them to guarantee that expenditure is being made where it is highly beneficial for the organization. Without doing something for these responsibilities and organization can find themselves in financial distress if they do not recognize exactly how to budget appropriately or if they do not know where there currency is going. Furthermore, a company that does not make any profit and they are a profit making company can have a great deal of concerns if they do not know how their money is being spent as well. Which financial principles assure this is followed? In turn, for financial statements to report financial performance fairly and consistently, they are planned according to commonly recognized accounting guidelines. Generally Accepted Accounting Principles are known as GAAP. Those that
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