31 May 2018
7 Accounting Roles in Subjects and Objects of Daily Activities
By Josephine Kurniawati

7 Accounting Roles in Subjects and Objects of Daily Activities

                Accounting was formerly known as bookkeeping, in parallel the development of science aka accountancy is now more familiarly referred to as accounting. Evolving into a branch of economics that can be used as tooling to support the development and implementation of business strategy. Is bookkeeping different from accounting? Bookkeeping is a part of accounting. If we examine the notion of accountancy provided by American Accounting Association (AAA), accounting is a process of identifying, measuring, record and report economic transactions (related to money) for made a report that can provide information about the state of the economy. The results of the report will be an ingredient for long-term decision making short, or long-term strategic decision making, assessment performance, control tools and others that will be reviewed further. Basic concepts to make standard financial statements studied on bookkeeping or bookkeeping, which then the financial statements become many forms, designations and its usefulness is then growing and giving rise to the mention of that familiarly referred to as accounting. Business and accounting are the two things that cannot be separated, even exist which says if accounting is a business language, the role of accounting as tools to manage the business to be more developed and advanced. Accounting not just data that contains the numbers only, accounting has functions that are important to every business. Means without accounting, business cannot speechless. In other words, the business will not work without accounting. Business large-scale to small-scale businesses always require accounting in it. In fact, some say in managing household finances only required accounting science. Wow, that's the importance of accounting in life daily?

Why is accounting so important? The question is indirectly always comes to mind. Without realizing that many people in everyday life have applied accounting science. Matters relating to calculations Everyday finances are included in the accounting role.

The Role of Accounting

  1. Why is accounting important for everyday life?

We can define why accounting is important for everyday life, this is because in everyday life we ​​always need and interact with money. The money we have should be managed wisely, and can meet some of the desires we need in a certain period daily financial life can be orderly, directed, and also has a purpose then the financial planning that you run should be as good as possible. Managing needs planning and control functions, where these two processes can run if supported by even the simplest records though that can be an accurate source of information, about how big our income and how much we spend. This is where accounting plays a role in life. Often times humans lack gratitude and self-introspection because it cannot regulate its expenditure on its income big enough for not being aware of what is being spent, in the presence recording helps to do a review of our activities will be money and making it easy to plan ahead.

  1. Importance of the Role of Accounting in the household

The role of women since the emancipatory and modern era is increasingly important and meaningful, if we see how many roles of women in Indonesia which is widely known from mother our finance minister Ibu Sri Mulyani, our social minister, candidate for governor, politician women even there are many women businessmen. How about housewives? Indeed, we must greatly appreciate the housewives who can take care of the household well because they can arrange household finance well, balancing between husband's income and existing expenditure and not to mention if with good management, able to allocate funds for future investment. Usually recording the simplest household is the recording of the kitchen and post stores other household necessities.

  1. See the Importance of Accounting Role in Business and SME’s

The role of accounting for business and SME’s is very vital. As the owner businesses and SMEs are required to learn about accounting for continuity the running of your business and SME’s. When you establish SME’s, maybe the basic lesson you should learn in addition to the marketing strategy is accounting. Because of this accounting that will make you will take what decisions you can take for your business. To see what it does, accounting is often used for two roles at once in running a business.

First accounting management and second financial accounting. Both must be in sync applied. In management, there are about four roles of accounting itself. Fourth the role must be run to get perfect results in managing a business and your own business. Running Cost Management To manage how products or services we provide to consumers can be quality even with a limited cost, also for the sake of interest consider product innovation. As a Management Control The controlling tool of business management, accounting acts as a system to boost the role of human resources (Human Resources) for the existing order maximize their performance. In addition, accounting also serves as a tool for financial controller consumers and vendors pay on time can also find out how many transactions that occur each day.

As an Information tool

But it is rarely known, that accounting has an adequate role crucially used as an information tool on the external side as a role financial Accounting. One of them as a liaison with the tax. Even future tax regulations will require SME’s must keep bookkeeping not just recording. Another benefit of Financial accounting is to facilitate a business when needing an injection funds from other parties such as investors or creditors or banks, even auditors. So concluded the presence of accounting in business and SME’s is used for information tools that can be used as a tool of interest for the owner, investors, and employees. They will always make accounting as a tool for brainstorming about the conditions that occur from their business manage. Accounting plays a role to control any information related to finance. This is related to whether the business and SME’s get profit or not within a certain period.

As an Analysis tool

In accounting management serves as an analytics tool. Analysis is used based on the existing financial statements. Reports must be made according to data and transactions that occur within a certain period and submitted to party’s internal stakeholders, to make management decisions such as investment decisions or basic planning.

  1.  The Role of Accounting at the Social Foundation (Nonprofit organization)

A social or nonprofit foundation is an institution that operates not for the purpose of seeking profit, but ore on fulfilling fulfillment the need for funds for his social mission, well a good organization should be create a trustworthy record to record all acceptance and then accounted for the slightest form its expenditure through recording as one manifestation of accounting practice.

  1. Accounting for Higher Education Foundation

Even colleges responsibilities if any profits should be noted neat to be invested up to 5 years ahead for the progress of Higher Education and tax-free benefits.

  1. Accounting in Church

It would be very dangerous if the Church did not keep records reliable and even worthy, recording is shared to the congregation because of the congregation will know that granting is even the responsibility of each person to God has been used also with full responsibility to God.

  1. Application of Accounting In Children

Early education in children teaches children responsible for money given pocket and wise use it as well as saving for what is desirable is to train them to tidy, and manage finances early on, so there is no parent who forced her child to school accounting because that is the language of business and the child is afraid of being unfamiliar with language number, recording and neatness.

II Kings 12: 4 Jehoash said to the priests: "All the money that is brought into the house God as a sacred offering, the entry money for the recording of the soul, money the ransom of the soul according to the judgments that apply to a person and all that money brought into the house of God because of one's impulse.

Verse 5 "Let the priests themselves receive it, each from his acquaintance and using it to repair the damaged house, anywhere there is damage "

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