5 November 2021

6 Financial Accounting Objectives

Financial Accounting Objectives


Gambar : jarmoluk

After knowing the function of financial accounting, the following list will explain its objectives.  This is the intended purpose:

1. Provide company financial information

The first objective of financial accounting is to provide financial information for a company or business unit.  Later the report will be used as a potential benchmark related to profit.

The simple reason is that if the company is able to generate large profits, of course the company's development will also grow rapidly.  On the other hand, the company will be destroyed if its financial data continues to decline.

2. Provide information on company assets and liabilities

The second objective is to provide information related to the company's assets and liabilities.  Therefore, it is certain that financial accounting is a reliable economic source of a company.

If viewed from the above objectives, of course the points that must be present and analyzed in financial accounting are the company's capital, receivables and debts as well as business assets, if this has been calculated correctly, of course the accumulation of company financial data is also neater.

From financial accounting, it can also be found how big the company's ability to pay trade debts.  And it can be studied whether the business capital is healthy or vice versa.

3. Provide change information to stakeholders

The accounting process also provides information about changes in the economic cycle.  What is known as the net term must indeed continue to be monitored for the cycle of change.

Usually the data taken from financial accounting is in the form of dividend data and information.  From this description, the funders can find out the extent of the company's efforts to increase the potential for business profits.

4. Provide important information regarding the company

Providing information about the company in general also includes the purpose of the accounting process.  That is, with the existence of financial accounting, which can be known not only information about financial but also related to non-financial.

Whatever information recorded as long as it can help the development of the company, then the data that appears is important to monitor its development.  Even if it's non-monetary information.

5. As a Tool That Companies Can Use

The next goal is to serve as a tool or company facility.  Which with this tool, financial records become neater and better.

Not only that, the purpose of financial accounting in this regard is to make the company's finances well organized.  So that money is no longer a chronic problem that makes companies collapse.

6. Maintaining the Company's Financial Balance

The last goal is to maintain the company's financial balance.  With financial accounting, of course, expenses and income are recorded in detail.  From there it becomes clear and there is no overlapping of data.

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