What Is The Purpose Of Accounting System?

The purpose of the accounting system is to keep the track of transactions and recording revenue and expenses of the company. It helps in recording, analyzing and retrieving the financial data. On the basis of financial status and financial reports important decisions of the company are made. The basic purpose of accounting system is the identification of all the activities which may impact the companies financially. These activities include purchases, sales, investments made and loan lending etc. Moreover, accounting system also provides a proper way to the companies for the monitoring and handling financial data like all data is arranged in journal entries and ledger. This also increases the internal check on the organizations.

3 important activities in accounting process?

Nature of accounting?