MINISTERE DE L’ENSEIGNEMENT SUPERIEUR

ET DE LA RECHERCHE TECHNIQUE REPUBLIQUE DE COTE D’IVOIRE

ANNEE UNIVERSITAIRE 2023-2024

UFR DES SCIENCES ECONOMIQUE ET Union-Discipline-Travail

DE GESTION

MASTER 1 EN ADMINISTRATION DES

ENTREPRISES

THE
IMPORTA
NCE OF
ACCOUN

TRAH GRACE MARIE

VIANNEY
EMMANUELLA
Good evening ladies and gentlemen
My name is Trah Grâce Marie Vianney Emmanuella. I’m Expert in accounting,
and I’m verry Happy to be here tonigth. I would like to thank you for your
presence. I’m in front of you to day to talk about the importance of financial
accounting and management of companies.
My présentation will be divided in three parts :
First of all I will define accounting and explain its role and importance ;
Then we will see the main aspects of accounting but in particular Financial
accounting and management ;
Finally, we will see the impact of accounting on the performance and
sustainability of companies.

My présentation will take about fifteen minutes.

There will be Time of questions at the end of présentation

First and foremost, let us define what accounting is

Accounting, often regarded as the language of business, serves as the
foundational pillar upon which the financial management of enterprises rests. It
encompasses a complex set of practices, standards, and principles aimed at
recording, organizing, analyzing, and communicating financial information of
an entity. It is a vital system that enables businesses to document their
transactions, monitor their financial performance, and establish transparent
reports for stakeholders.
The role of accounting in businesses is multifaceted. Firstly, it ensures the
traceability and authenticity of financial transactions. Each transaction, whether
it be a sale, purchase, investment, or loan, is systematically recorded, thus
ensuring the integrity of the company's financial data. This traceability is crucial
for regulatory compliance, risk management, and fraud prevention.
Furthermore, accounting provides a true and fair view of the company's financial
position at any given point in time. Through tools such as the balance sheet and
income statement, managers can assess the company's solvency, profitability,
and liquidity. This information is crucial for internal decision-makers
(management, shareholders) and external stakeholders (investors, lenders,
regulatory authorities) who utilize these data to evaluate the company's financial
health and make informed decisions.
Another critical aspect of accounting is its contribution to financial planning and
strategic decision-making. By analyzing past financial trends, forecasting future
cash flows, and evaluating the performance of various segments of the business,
managers can develop strategic plans and realistic budgets. This ability to
anticipate and address future financial challenges is essential for ensuring the
long-term viability of the enterprise.
Lastly, accounting plays a significant role in communicating the company's
performance to stakeholders. Financial statements, such as the annual report,
provide a comprehensive overview of the company's financial performance and
business strategy. These reports are designed to be transparent, accurate, and
understandable, thus allowing stakeholders to make informed decisions
regarding their involvement with the company.
In summary, accounting is much more than a set of rules and procedures; it is a
strategic tool essential to the financial management of enterprises. By providing
accurate, reliable, and relevant information, it enables businesses to make
informed decisions, attract investors, and maintain stakeholder confidence,
thereby ensuring their long-term success.

"Now that we have completed the first part, let's move on to the second.
Accounting encompasses various branches, each playing a distinct role in the
financial management of enterprises. Firstly, financial accounting focuses on
preparing external financial statements, such as the balance sheet, income
statement, and cash-flow statement. These statements provide a comprehensive
snapshot of the company's financial position and performance, serving as crucial
tools for investors, analysts, and regulatory bodies.
On the other hand, management accounting is geared towards providing internal
information to assist managers in making operational and strategic decisions. It
involves the use of tools such as budgets, cost analyses, and performance
dashboards to evaluate product profitability, optimize resources, and maximize
value for the company.
Financial accounting ensures compliance with regulatory standards and provides
stakeholders with an accurate representation of the company's financial health.
Management accounting, on the other hand, empowers managers with insights
to improve operational efficiency and strategic decision-making.
Both branches of accounting are indispensable for effective financial
management. While financial accounting focuses on external reporting and
compliance, management accounting is geared towards internal decision-making
and performance improvement. Together, they provide a comprehensive
framework for managing the financial aspects of an enterprise, ensuring its long-
term success and sustainability.

We have completed the second part; now we proceed to the final section of
the topic
Effective accounting practices have a significant impact on the performance and
sustainability of businesses. By providing accurate and timely financial
information, accounting enables managers to make informed decisions, identify
areas for improvement, and allocate resources efficiently.
Moreover, accounting helps businesses evaluate their financial performance and
identify trends that may affect future operations. By analyzing financial
statements and performance metrics, managers can assess profitability, liquidity,
and solvency, thus enabling them to formulate strategies to enhance
performance and mitigate risks.
Additionally, sound accounting practices are essential for attracting investors
and securing financing. Investors rely on accurate financial information to assess
the company's financial health and make investment decisions. Similarly,
lenders use financial statements to evaluate creditworthiness and determine
lending terms.
Furthermore, accounting plays a critical role in regulatory compliance. By
adhering to accounting standards and reporting requirements, businesses
demonstrate transparency and accountability, thereby enhancing trust and
credibility with stakeholders.
In conclusion, accounting is a cornerstone of effective financial management,
with far-reaching implications for business performance and sustainability. By
providing accurate financial information, supporting decision-making processes,
and ensuring regulatory compliance, accounting contributes to the success and
longevity of enterprises in today's competitive business environment.

Let’s move to the conclusion

In summary, our exploration of accounting highlights its crucial role in financial

decision-making and the sustainability of businesses. By reviewing the main
aspects of accounting, from its definition to its practical applications, we
underscored its impact on corporate financial management. Through embracing
sound accounting practices, companies can better allocate their resources and
strengthen their market position. Thus, accounting serves as a vital pillar for the
enduring success of businesses.