Importance of Accounting System

1.Measuring of resources  of a business entity. As it is shown in the balance sheet.

2.Measures the resources of a company i.e the claims and results measured at a given moment in time. The balance sheet show claims while income statement shows results.

3.Contribute to the development of modern ideas through research.

4.includes to development of better information policy and improves control of the top of the organization.

5.Through accounting system we prepare budget which help managers emphasis control throughout the organization.

6.provides course alternative at basic operation point.

7.Provide cost consciousness in the organization.

8.establishes means media through which information can move from one to another within either the organization or between organizations.

9. it provides a means which an organization gather information and communicate information which acts as an aid in the organization and coordination of decision making in order to achieve predetermined goals and objectives.

10.it is used in non profit making organizations to measure use of resources.

11. it provides information to management to help choose from various alternatives provided by the accounting information.