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Nature & Characteristics of Accounting

Nature & Characteristics

Nature & Characteristics of Accounting is a decision-oriented information science. The very beginning part of accounting is book-keeping. Book-keeping records the financial events of the business entity in a systematic manner. for doing so, book keeping follows as scientific system called double entry system (As developed by Luca Pacioli) Book-keeping records transactions, in most cases, from source documents i.e objectively identifiable events. For instance, cash memo substantiate the cash sale. Book-keeping keeps the records for future reference also. The task of book-keeping is performed by computers and skilled clerical staffs, not by Nature & Characteristics of Accounting.

Professional accountants are involved with the interpretations and use of accounting information than with its actual preparation. Their work includes evaluating the efficiency of operations, resolving complex financial issues, forecasting the results of future operations, auditing, tax planning and designing efficient accounting information system. A person might become a proficient book-keeper in a few weeks or month. To become a professional accountant, however, it is a far greater challenge. It requires years of study, experience and an ongoing commitment to keeping current Nature & Characteristics of Accounting.

Characteristics of Accounting

Accounting is a self-sufficient process. It follows several but sequential steps in recording transactions. It is an ongoing process for Nature & Characteristics of job.

Accounting processes transactions to generate meaningful information and finally communicates with users of diversified interests. It presents financial information to the external users in the form of financial statements, Users can make effective decisions on the basic of such information. Accounting is gradually vesting the responsibility of reporting non-financial information to the users. Public limited companies operating in Bangladesh is recently focusing on environmental issues, corporate governance and other important social issues along with financial information in the annual report.

Accounting inside the organization plays a vital role in managerial decision making accounting produces and presents internal reports namely. Production report budget, sales forecasts, projected cash flow statement and so on, to the corporate bodies, Thus accounting aids in managerial decision making.

Nature & Characteristics of Accounting

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