What is Accounting
Accounting refers to gauging, processing and communication of the financial information about the economic groups. This term was discovered by an Italic mathematician in 15th century. It also refers to the business language that measures the outcomes of a company’s economic activities and distributes the information among the several users such as investors, creditors, management and regulators. The individuals responsible for the actions of accounting are called as accountants.
Accounting is generally categorized as financial accounting, management accounting, auditing as well as taxing. The financial accounting refers to reporting the financial information of a company such as financial statements to external users of information like investors, regulators and suppliers. Management accounting focuses on the measurement, evaluation and reporting of data in internal operations through management. The records of financial transactions in order to detail the financials may be described in the financial reports that are referred as bookkeeping.
Need of accounting firms in Bulgaria
Accounting is offered by the reputed accounting firms and prepared as per the proven accounting standards which are established by the different standard setting companies.
Accounting is not new; it has been being followed for the several thousands of years and can be traced to ancient civilizations. The early accounting development dates are similar to writing, counting and money and the proofs for ancient forms of accounting in various countries and auditing systems.
In the modern time, extensive audits of publicly traded firms are conducted as bunch of accounting companies. There are big accounting firms established around your area that dominate the industry conducting audits of above 80% of the whole country. Moreover, such major companies suggest the financial strategies and provide a variety of management and tax assurance services on demand. However normally recognized as individual company, the accounting firms are actually a network of independent businesses who have implicated for agreements together creating quality standards and share a general identity.
Even the smallest part of financial accounting firms is a significant part of industry, experts discover it unlikely that any existing company event to be able to compare to the size of the major players. It can be somehow based on the truth that before 1980s the accounting firms were popular of included major groups.
The Institute of certified public accountants of Bulgaria also suggests the techniques to handle the financial crisis such for profit based companies that need to disclose more than profits and costs on their annual financial reports every year. Some businesses point to their positive contributions such as local community building construction idea.
Many companies are still unable to recognize the value of accountability reporting and how to implement their usefulness to various people like customers, bondholders, shareholders and employees and groups. It is not evident how corporate accounting impacts the decision making value of managers or whether it affects the social worth in the community. The best practices in the field of financial accounting can be leveraged to test and enhance the quality of corporate accountability reporting.