ACCOUNTING

AND
BUSINESS
OPERATIONS
 The objectives of learning
1. Students understand the meaning and the purpose of
accounting
2. Students able to explain the role of accounting for the
company and user of accounting information
3. Students able to explain the accounting profession
4. Students able to explain the accounting fields
5. Students able to explain the types of companies
6. Students able to explain the organization types of
company
A. Understanding and
Objectives of
Accounting
Accounting is often referred as a
business language, or more
precisely as a decision-making
language
 The definition of accounting can be
formulated through 2 (two) angles of point
of view Fig. III

01 from the point

of view of users
02 from the point
of view of the
of accounting process of its
services activities
 Accounting can be defined as a scientific
discipline or service activities that provide
When viewed from the information needed to carry out activities
efficiently and evaluate the activities of an
point of view users of entity or transactions of a financial nature
The use of accounting information is to:
accounting services 1. Make an effective plan, as well as
conduct supervision, and appropriate
economic decision making by
management;
2. The entity's liability to investors,
creditors, government, and so on.

Moon
 accounting can be defined as the process of
recording, classifying, summarizing, reporting
If you look at from the and analyzing financial data of an entity
From this can be seen that accounting is a
point of view the process complex activity, so basically accounting
should:
of its activities 1. Identify which data are relating to or
relevant to decisions to be taken;
2. Processing or analyzing relevant data;
3. Converting data into useful information
can be used for retrieval decision

Moon
 In general, accounting can be
defined as a financial information
system that produces reports to
interested parties regarding
economic activities and conditions
company.
As a financial information system, accounting
is a process of 3 (three) activities, such as
identification, recording and communication
of an enterprise's economic events that
generate information for its users
B. The Role of Accounting in
Companies and End Users
Stakeholders use the accounting
report as the main source of
information for decision making.
Other information is also needed in
taking company decisions
 Generally, the parties who need accounting information are:
1. Manager.
A company manager requires accounting information for preparation of corporate planning, evaluate the progress achieved
by the company, and take action necessary for a correction
2. Investors.
Investors really need accounting data for a company organization to analyse concerned organizational developments.
Investors have invested in a business, with the aim of getting profits. So investors must analyse the company's financial
statements which they will choose to inject the funds or not.
3. Creditors.
Creditors are interested in accounting data, because creditors have an interest in granting credit to candidates Registration
Identification Communication
4. Selecting Transaction, Recording, Classification, Overview, Prepare Accountancy Reports, Analyse and Interpret accounting
information for interested parties such as managers, investors, creditors, government, organization non-profit, others.
Customers selected by creditors are customers who able to repay the loan either principal and interest at the right time.
Because creditors are very considered with the financial statements of prospective customers.
5. Governments
Governments are very interested with accounting information. From the financial information of an organization, the
government will be able to determine the amount of tax to be paid by the concerned organization.
6. Non-Profit Organizations. Although non-profit organizations aim not to looking for profit, this organization still really needs
financial information for budgeting purposes, pay employees and pay for other expenses
7. Other users. Accounting information is also required by other organizations such as labour organizations, which require
accounting information to apply for raises, benefits, as well as knowing the progress of the company where they work
C.Accounting Profession

Contribution of accountants to the

social system of the economy of a
country is not small
 Specialization of accounting field in daily practice, speaking of
accounting is distinguished into 2 (two) fields, for example:

Public accounting Internal

accounting
Venus
 Public accounting in regard to accounting services
for society. Accountants who work in public
accounting are called as a public accountant and they
will get a fee from their service. Types of work that
accountants usually do for public services include
financial statements auditing, assistance in the field
of taxation, accounting information systems or
management consulting. In order to achieve as a
Certified Public Accountant (Certified Public
Accountants = CPA) required special requirements
must be met by. The accounting professional
organization in Indonesia is called the Association of
Accountants Indonesian Accountant (IAI)
Meanwhile, in internal accounting, accountants will work for a
company. Internal accounting is also known as private accounting.
This internal accounting is called as an internal accountant or
private accountant sector or management accountants. Services
provided by accountants in a company includes jobs as:
a. controller
b. bookkeeper (book holder)
c. cost accountant (accountant industry or cost accountants)
d. internal auditors (internal auditors)
e. tax specialist
f. budgetary accountant
D.Areas of Specialization in
Accounting
I. Financial accounting is also called general accounting. The information presented
from financial accounting is in the form of financial statements, the users are decision
makers from the outside of the company. Information generated by accounting
finance is commonly to various users. Group of users who normally require financial
accounting information are:
1. Company owners, use this financial information to decision making whether they
will stay on the ownership of the company or have to give up ownership in the
company.
2. Company creditors, using this financial information to make a decision whether it
will be extending the company's credit or reject it
3. The government uses this information as a basis determination of the amount of tax,
etc.
4. Employees need this financial information to perform negotiations with companies
in terms of contracts or various decisions related to employment
5. Enterprise customers use this financial information for decision-making related to
cooperation with company
 Financial accounting usually includes 3 (three) functions, they are (1) data selection
and recording, (2) data analysis, and (3) prepare reports for users. Illustration 1.3 shows
the three the functio
Illustration 1.3: Three Functions in Financial Accounting
II. Cost accounting, budgeting is included in the management accounting group.
Company management must provide a variety of information for the achievement of
goals. The main part of the information needed is for planning and daily control of
the company. Management must know what is happening in the company and its
environment whether the company's operations can run smoothly as desired to
achieve its goals. Another category of information that management needs is for long-
term planning, for example to determine overall policy for the company or to make
special policies due to events in the past that did not expect to be repeated in the
future.
III. Management accounting includes 3 (three) functions, they are: (1) selection and data
recording, (2) data analysis, and (3) preparing reports for management. These three
functions appear in the following schematic:
Illustration 1.4: Three Functions in Management Accounting
IV. Auditing is a related field of accounting with the activity of checking the records of
the results of financial accounting activities which is a test of the feasibility of the
finance report freely (independently / impartially) and objectively.
V. Tax accounting. The field of Tax Accounting deals with the determination of tax
objects that are borne by the company as well as the calculation. Tax accounting
activities assist management in determining the transaction options to be carried out
in connection with tax considerations.
VI. Budget Accounting. The field of budget accounting activities relates to collection and
processing of financial operations data that has been occurs and estimates of the
probability that it will occur, to the importance of determining the company's
financial operating plan (budget) in a certain period.
VII. Governmental Accounting is a field of accounting which activities related to the
problem of general state financial audits called the State Financial Administration.
Thank
You!