ACCOUNTING IN

BUSINESS
GROUP: ID 2459, ID 2418, ID 2451, ID 2457, ID 2476
Explain Why Accounting Is Important to Business Stakeholders?

The importance of accounting for the organization's

stakeholders. Accounting should be understood as a complete,
consistent, logical system for collecting and processing data
about the assets of a company and its activities, as well as the
presentation of economic and financial information.
Stakeholders in the business—they’re interested in its activities
because they’re affected by them.
The main thing of accounting is to help stakeholders make
better business decisions by providing them with financial
information.

Also, there are some reasons, why accounting is important:

1. Accounting keeps you organized;
2. It backs up your tax return claims;
3. Accounting holds you accountable;
4. It guides decision-making;
5.You can measure new strategies with hard numbers;
6. It’s necessary for getting investments or loans.
Accounting is often called the “Language of business.” It is a means of
communicating information about a business. Its responsibility is applying a
thorough knowledge of the theory of accounting, that is, generally accepted
principles of accounting to the practical field of business in order that income
and financial position may be stated fairly.

Why is accounting important?

Accounting is the analysis and interpretation of bookkeeping records. It
includes not only maintenance of accounting records but also the
preparation of financial and economical information which involves the
measurement of transaction and other events pertaining to a business.

To operate a business profitably and to stay solvent, the profitability

and solvency of a business should be measured at regular intervals.
Accounting plays a big role in business. Accounting helps you: track
income and expenses, ensure compliance, provide investors,
management and government with quantitative financial information.

There are two types of functions of accounting, first, historical

functioning and second, managerial functionals.
A certified public accountant (CPA) is a designation given by
the American Institute of Certified Public Accountants (AICPA)
to individuals that pass the Uniform CPA Examination and meet
the education and experience requirements. The CPA
designation helps enforce professional standards in the
accounting industry.

The CPA exam has four parts: Auditing and Attestation (AUD),
Business Environment and Concepts (BEC), Financial
Accounting and Reporting (FAR), and Regulation (REG). A score
of at least 75% must be earned in order to earn the CPA
designation
In CMA the credential is geared towards managing and making strategic decisions, making it an excellent choice for those
wanting to work their way up in a specific company.
The CMA exam consist of 2 parts covering 12 competencies
, such as:
Part 1: Financial Planning, Performance, and Analytics
15% External Financial Reporting Decisions
20% Planning, Budgeting, and Forecasting
20% Performance Management
15% Cost Management
15% Internal Controls
15% Technology and Analytics
Part 2: Strategic Financial Management
20% Financial Statement Analysis
20% Corporate Finance
25% Decision Analysis
10% Risk Management
10% Investment Decisions
15% Professional Ethics

A score of at least 72% must be earned in order to earn the CMA designation. A minimum of a bachelor’s degree is required
to take the CMA exam. An accounting degree or a specific number of credit hours in accounting is not required in order to
take the CMA exam. Once the CMA designation is earned, thirty hours of continuing education with two of the hours
focusing on ethics must be taken annually in order to maintain the certification.
A Certified Internal Auditor (CIA) is a certification offered
to accountants who conduct internal audits. The Certified
Internal Auditor designation is conferred by the Institute of
Internal Auditors (IIA) and is the only such credential that
is accepted worldwide.

As a matter of fact, earning a professional internal audit

credential is a critical step to being distinguished from your
peers and will:

Enhance credibility and respect.

Sharpen skills and proficiencies.
Increase advancement and earning potential.
Demonstrate understanding and commitment.

The CIA exam includes four domains focused on business

acumen, information security, information technology, and
financial management. Exam is designed to test candidates'
knowledge, skills, and abilities particularly as they relate to
these core business concepts.
The Certified Fraud Examiner (CFE) is a credential awarded by
the A (ACFE). The association is a provider of anti-fraud
training and education.

Program is a Post-Graduate Professional Certification offered

internationally by the American-based CFA Institute (formerly
the Association for Investment Management and Research, or
AIMR) to investment and financial professionals. It has the
highest level of global legal and regulatory recognition of
finance-related qualifications.
Certified Financial Planner (CFP) is a formal recognition of
expertise in the areas of financial planning, taxes, insurance,
estate planning, and retirement. Owned and awarded by the
Certified Financial Planner Board of Standards, Inc., the
designation is awarded to individuals who successfully complete
the CFP Board's initial exams, then continue ongoing annual
education programs to sustain their skills and certification