Role of Accounting and Finance

What is the role of accounting and financial decision making in Business? Why is essential to consider accounting data in relation to other factors in other decisions in all situations.

The word ACCOUNTING can firstly be defined as the collection, recording, compiling and forecasting of financial information.
There are two different strands in accounting, and these are FINANCIAL accounting and MANAGEMENT accounting. Financial accounting has information about reports of the past, it can be used by external users, it needs to be reliable, accurate and consistent, it is ruled by accounting conventions and legal requirements, and it covers the company as a whole.
Management accounting focuses on the present and the future of the company, it is purely for internal users, it is usually easy to use, relevant and up-to-date, and it covers the departments and divisions rather than the company as a whole.
The first part of accounting is the COLLECTION of the data. This data is collec...