Unit 1 Lesson 2- Personal Accounting

Unit 1 Lesson 2- Personal Accounting - Importance of...

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Importance of Accounting We must understand the importance of accounting in personal affairs versus the affairs of businesses, as well as how it applies to businesses, both large and small. We will also learn about different types of businesses (service, merchandising, and manufacturing) and how an accounting system for each of these types of businesses is unique. Personal Accounting A background in accounting would enable an individual to manage finances in his/her daily life. As in business, it is important to be able to track earnings versus expenses in order to improve your financial performance and achieve your financial goals such as savings, investments, and accumulation of assets i.e. house, cottage, cars, boats, etc. A knowledge of accounting helps individuals to prepare personal budgets, income tax returns, and make investment decisions based on financial statements. Importance of Accounting in Business Businesses, both large and small, must employ the help of someone with a working
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Unit 1 Lesson 2- Personal Accounting - Importance of...

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