What is the purpose of accounting? Understand everything about accounting and importance for companies


Accounting has evolved over the years and seeks to improve and manage all the management information of a company for more assertive decision-making by the business. It deals with social science, but what is the purpose of accounting? Its objective is the study of assets, assets, rights, and obligations for companies, public or private, and individuals and legal entities.

In this way, you and your company need to understand the importance of accounting to project business growth strategically. Below we separate the complete material with everything about accounting.

What is accounting?

Accounting is the science that studies and practices the functions of guidance, control, and registration related to the acts and facts of economic administration, according to the Brazilian Congress of Accounting.

Accounting is a theoretical and practical science that studies the methods of calculating and recording the financial transactions of a firm or company according to Oxford Languages.

In theory, accounting is a social science that studies and puts into practice recording and control functions related to acts and facts of the Economy and Administration. Specifically, it studies and controls the assets of companies through accounting records of facts and their respective statements of results produced.

Therefore, it assists in the process of business administration, playing a crucial role in decision-making. They are information and reports that an accountant understands and guides the entrepreneur in the best path to follow for more profitability and business success.

What is the meaning of the word accounting?

What is the purpose of accounting? Understand everything about accounting and importance for companies

Accounting is a theoretical and/or practical scientific area that studies the methods and techniques used to calculate and record the financial transactions of a firm, company or company.

Origin of the term accounting

The origin comes from the Latin COMPUTABILIS, that is, “that which can be counted”, from COMPUTARE, which means “to add, calculate”, from COM-, “together”, + PUTARE, “to estimate, to imagine a result”.

What is the purpose of accounting?

Primarily, the purpose of accounting is economic information for governments, suppliers, banks, investors, employees and unions. Each main group of users of this information will be able, from it, to assess the economic and financial situation of the company and make inferences about its future trends.

After all, what does the purpose of accounting involve?

This is information involving accounts payable and receivable, equity, etc. and from them, it is possible to generate financial statements, such as Balance Sheets, Statements of Income for the Year, Statement of Accumulated Profits or Losses, and Statements of Origins and Application of Resources.

As well as data that are not indicated in the financial statements, such as interest rates, and fixed asset depreciation rates, which end up being shown in the Explanatory Notes, which are part of accounting for companies.

What is the importance of accounting in business administration?

The importance of accounting is linked to the administration of the company’s finances, which is crucial for it to remain in the market and still act under the requirements of the law and the Federal Revenue. Therefore, accounting ensures information security and provides subsidies for good business planning capable of reducing expenses, analyzing all your assets, and keeping accounts up to date.

Looking at the purpose of accounting, we can say that it plays a key role in any company. If well conducted, it can give the manager much more assurance that the business is in order and that there is no risk of failing to pay taxes and incurring fines.

What is the responsibility of the accountant and entrepreneur?

We have more than 93 possible taxes and 67 possible declarations per company, totaling 160 obligations and the accountant has the role of calculating the taxes, sending the sheet, but also delivering several declarations, and preparing the financial statements, that is, the accounting (the accountant’s primary function), periodically, is preferably monthly.

All taxes, payroll and accounting matter are governed by laws and it is assumed that every citizen has access to and must be aware of the legislation.

The entrepreneur, on the other hand, is responsible for transmitting all information regarding the company to the accountant and having full transparency in the data so that the accountant performs the procedures all in line with the business need in accordance with the obligations and laws in force.

What is the object of the study of accounting?

What is the object of the study of accounting?

It can be said that the object of Accounting is the study of assets defined as the set of goods, rights and obligations belonging to one or more people, in their static (economic and financial) and dynamic aspects (variations suffered by the wealth of assets) and in its qualitative and quantitative aspects, aiming to undress you and show you how your situation is, in order to provide conditions for intervention in it.

Assets = Assets + Rights + Obligations

What is the concept of accounting?

Studying the purpose of accounting, the quantitative and qualitative variations that occur in equity are related to its concept. In other words, a set of assets, rights and obligations, the concept of accounting is related to a group of techniques, rules and procedures to control assets and help manage them effectively.

As, for example, bookkeeping is a specific form of this science to record heritage occurrences; financial statements are expository statements to gather facts in order to obtain more information, and balance sheet analysis is a technique that allows decomposing, comparing and interpreting the content of financial statements, providing analytical information.

What is the purpose of accounting?

Accounting assumes a role and aims to be the science of wealth, that is, the data collected is analyzed within the company’s management and it is possible to make decisions influenced by the results.

These are economic data collected, measured, recorded and organized in the form of reports and communications, created by an accountant, a specialist in the area, to assist in directing the company’s strategies.

With accounting, it is possible to measure the results of companies, evaluating business performance, and, from there, provide guidelines for decision-making, thus making it clear what the objective of accounting is for companies.

What are the accounting users?

Accounting users are people who seek to assess the equity situation of a company, in addition to seeking to organize the financial and management form, avoiding problems with the tax authorities.

They can be internal and external, such as:

1. Internal

Internal users are those who are directly related to the company’s routine activity and use accounting data in their functions.


Owners, shareholders or investors;

Accountants and Internal Auditors;

Other employees.

2. External

External users are those who are only interested in accounting data, without actively participating in the company’s processes, such as:

  • Government;
  • Banks;
  • Suppliers;
  • Potential shareholders;
  • Other interested.

Who can perform the accounting function?

Only specialists in the field, graduated in Accounting Sciences or Accounting, with approval in the Proficiency Exam and registered with the CRC (Conselho Regional de Contabilidade).

The Accounting Professional can perform multiple functions, being able to act as:

  • Autonomous
  • Accounting Entrepreneur
  • Independent Auditor, Internal Auditor
  • Tributary consultant
  • Controller
  • Tax Auditor
  • Accounting Expert
  • Member of the Audit and Management Board
  • Referees in specialized chambers
  • Academic
  • Member of Audit Committees
  • Class Entity Member
  • Executive

How much is an accountant’s salary?

According to Catho, in Brazil, the average salary of an accountant is  R$ 4,631. Salaries can range from R$3,250 to R$7,713.

With direct action at the operational, tactical and strategic levels of organizations, an experienced accountant can receive salaries that reach R$ 80,000 in management positions in large companies.

What are the functions of accounting?

What is the importance of accounting and its routines? For companies, the accounting routines are: financial planning, strategic planning and ancillary obligations. The accountant becomes responsible for the tax and accounting area to correctly carry out the procedures, avoiding problems and assisting in the growth of the business.

1. Financial Control

Financial control, whether for small businesses or large organizations, is a very sensitive point. Mainly in smaller businesses, it is one of the biggest pain points for the customer. One often sees confusion between the finances of the individual and the legal entity, default by customers that may compromise working capital, or simple financial disorganization. All these situations can compromise the financial health of the company.

With financial control organized by the accountant, companies are better able to take out loans and financing when necessary. Not only financial control but well-organized and structured accounting, with up-to-date accounting reports and correct information.

2. Cash flow

The entrepreneur who starts in financial management is first faced with a cash flow report. But there are high chances that this document means absolutely nothing to him, due to lack of understanding about the information.

And that’s where the accountant’s role comes in: translating the information and giving simple tips on cash flow control. Segmenting expenses into ordinary and extraordinary, for example, is a simple and efficient measure. With small attitude, the entrepreneur manages to manage well and see the importance of accounting in his routine.

3. Accessory obligations

This is one of the main services accountants are sought after. Despite being bureaucratic and not demonstrating the importance of accounting for companies, it is essential. Any office provides this service and there are even technological solutions that help with the task.

Delivering ancillary obligations on time is a way to ensure that the company is up to date with the Federal Revenue, which avoids the imposition of sanctions and fines. Even if it shows little of the importance of accounting, the client knows that it needs to be done.

4. Tax plan

With this plan, there is a legal way to pay less taxes based on the option for the most suitable tax regime for the client. Although common sense believes that Simples Nacional is the best option until the limit is reached, this does not always happen. Therefore, it is important to have a professional to carry out a detailed analysis of the company and choose the best framework.

Due to the fact that billing changes over time, it is important to have the help of an accountant in the business routine to periodically evaluate tax planning. It is worth highlighting the importance of accounting at this point, as it generates great savings for the business.

What are the types of accounting that the accountant can perform?

The accountant or accountant can work mainly in the following areas:

  • Environmental
  • Actuarial or Social Security
  • banking
  • Commercial
  • Industrial
  • Human Resources
  • Insurance
  • Transport
  • Financial
  • Supervisor
  • hospital
  • Hotelier
  • Real estate
  • International
  • Rural
  • tax

What is studied in the Accounting course?

In the accounting course, areas focused on mathematics are mainly studied, which are part of the accountant’s day-to-day life, as he must work with numbers and make impeccable calculations so as not to cause financial losses to his clients.

The curriculum includes subjects such as:

  • Mathematical logic
  • Financial math
  • Probability and statistics


  • Commercial law
  • Business Law
  • Social and Labor Legislation
  • Tax Legislation

Administration and Economics:

  • Financial management
  • Organizational behavior
  • Macroeconomics
  • Financial market
  • Strategic planning
  • Management Information Systems


  • Analysis of Financial Statements
  • Cost analysis
  • Analysis of Investments and Financing Sources
  • Accounting Audit
  • Working Capital and Financial Analysis
  • Commercial Accounting
  • Agribusiness Accounting
  • Financial Accounting
  • Tax Accounting and Tax Planning
  • International Accounting
  • Social and Environmental Accounting
  • Public Accounting
  • Controllership
  • Structure of Financial Statements
  • Public budget
  • Accounting Theory

Accounting: much more than an obligation, a strategy

Accounting for companies is a key factor for controlling assets, and collecting data to be strategically transformed into procedures and actions that direct business decision-making, in addition to being extremely important in the analysis of the company’s profit and loss. It is worth remembering that it is possible to change accounting and document the action through an accountant transfer term.