1.1 Role of accounting Accounting are used to record all the financial transaction of organization. It can be systematic to record and comprehensive show out all financial transaction to provide qualitative information for a organization. Besides of that, accounting also includes to make some summarizing, analyzing and reporting these transaction to compare and making decision. Accounting most important for Brave Brands Marketing organization's operation due to it can be apply by a bookkeeper and a accountant to help the organization future prospects. Proper accounting is key functions to Brave Brands Marketing due to it is standardized accounting principles to record all the financial transaction and it can be widely accepted by all the …show more content…
Usually the accounting cycle period takes 12 months to complete but that's not set in stone. Accounting cycle is a procedures used to processing all the accounting transactions which is recording, classifying and summarizing. First step for preparing the accounting process are recording all transaction into the ledger. When any business transaction occurred would be enter into the journal. Thus, created and recorded a series accounting transaction which is first procedure to completed the recording step in accounting process. Next step of accounting process are posting into ledger account. Its contain debit and credit entry into account balance from journal to the ledger. This procedure would be classifying into several account like asset, liability, owner's equity, revenue and expense. Following step are preparing a trial balance. It able to prove and truly show out the tally amount between debit and credit when entries in the ledger. In this procedure would be accuracy of ledger account balances to make sure posting process are correct. Reminder in this process the debit and credit side balance should be equally at the trial balance. The final step of accounting process is take the exactly figures from trial balance and start to preparing the financial statement. In financial statement would show the position of the business during a accounting period. (Adam Kasi,, …show more content…
These report are view by shareholders, creditors, bankers, debenture holders and so on. Management accounting is indispensable for set up and management the policies and place. Apart of that, financial accounting is mainly record "historical data". That mean financial accounting only record those transactions that have occurred. Management accounting process those transaction used to these data to infer and improvements for the future. Besides that, financial accounting is involved and assessment the entire organization results. Different with management accounting just only involved in different departments and cost center. Moreover, financial accounting is mandatory to preparation some financial accounts while these report are a necessity in other. In contrast, management accounting is not mandatory due to it just a service function and assist the management to manage their business. Furthermore, financial accounting prepared is used to find out profitability and financial position. Management accounting reports is used for internal only. These report prepared by different level of management. (Rajesh Bhushan,