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How Accounting Works

As per my thinking, accounting works for you as your best friend if you are doing any business. Whether you are doing the business transport or selling the gym items or any other. All need to accounts for each transactions, if they want to know the information which they need actually. I mean, the information of net profit, quantity of stock of different items which are unsold and financial position of business.


Like a best friend, accounting will solve your all problems if you share with him through correct recording of each transaction. In this content, we will explain the steps of "how accounting works for you?"





1. Accounting Works for the Success of Your Business



When you do any transaction in your business in any day and start to record in your books, you can make the database of world's greatest information which works for success of your business. You can compare given information with your target. For example, you have make the target of net profit of Rs. 1 Crore in one month. If you have no record of everyday incomes and expenses, it is impossible to know the amount of net profit or net loss. Like this, you can set your target and accounting will help you to achieve your all target. For example, you have made the target to sell 500,000 customer. This is your target. Only debtor account and cash book will tell you, how much cash and credit sale, you have done in the month. For going to more deeply, you can easily find the number of actual customers who bought from you. For example, they are 4,00,000. Now, this figure will help you to do more for increasing the number of customers. 


2. Accounting Makes You Greatest Accountant of World


If you have started to learn accounting, you will become greatest accountant of the world. After this, your dependence on other professional accountant will stop. You can record your all business transactions yourself. You can manage your inventory, debtors, creditors, inventories and taxes yourself. For this, you have to keep your positive attitude for learning the accounting. Whether you are providing the service of painting or you are musician, you can become accountant yourself. For this, you just start to learn accounting from beginning by leaving all your unsuccessful stories of learning of accounting. 

It is true, you may unsuccessful to record any your transaction through journal entries but it was past, today is new morning. Today is new sun. Today is new air which are singing, if you will try again, accounting will become easy for you. Everyday, you have to say to yourself, when accounting makes me great accountant of the world, I have to give its price by giving my time with full concentration. Please stop all my negative thinking which are saying me that I can not make the accountant. I can not learn accounting because this is not my field. If you are doing any business or commercial activity, it means, it is the one of the best proof, you are the eligible for learning accounting. Start dream when you learn accounting, you can not only check your accounting mistake but mistake of big MNC's financial statement. What a great reward! Interesting!


3. Accounting Works for You as Intelligent Adviser 


Today, accounting works for you as intelligent adviser because today accounting system is totally dependent on the computer software which have hundreds options to analyze the accounting data within the second. For example, out of your 6,50,000 product items, you have to promote 55,000 products items in this Diwali season, your accounting software will take just few second for showing last 10 years trend of sale of your products in Diwali season. Now, some accounting software systems  have started to use statistics tool with accounting information. So, it will very easy for you to get all technical advice from accounting instead from any third party advice. 

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Accounting Education: How Accounting Works
How Accounting Works
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Accounting Education
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