Financial Accounting is Compulsory for Companies

Importance of financial accounting for companies to control capital

For a company to properly control their capital and accounts is something of vital importance if they want to make their business successful on long term basis and in turn enjoy a long successful life while operating in their particular industry of their global corporate world. For this reason, being the solution for a company to make sure that they are administering their capital properly; financial accounting is one of the most important and compulsory of all business activities requiring to be done on a regular basis. Unfortunately, for the reason that I order to do financial accounting properly means a certain degree of knowledge, companies now have to pay out big amounts of capital to get financial accounting experts to do this for them.

According to SEC regulations and companies ordinance 1984, financial accounting is compulsory for the public companies to maintain capital and financial records. There are several companies offering their services of financial accounting to public companies in order to keep their financial records. Several software are also available like Excel financial accounting for maintaining in house financial accounting that save lots of money of the public companies. To avoid any frauds and errors financial accounting is very helpful and is compulsory for the companies.

One Response

  1. bong Says:

    ‘According to SEC regulations and companies ordinance 1984, financial accounting is compulsory for the public companies to maintain capital and financial records.’ Who are those public companies?

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