Accounting Requirements

The field of accounting embodies a set of concepts and techniques that are used to measure and report financial information about a particular economic entity (or smaller unit of an entity). An economic entity may be an individual, a for-profit or non-profit business or organization, or a unit of government.

Accounting information is useful not only to owners of entities or their creditors, but also to business planners and forecasters, government administrators, financial analysts, and even individual employees of a company. Investors are hoping to learn as much as possible about a business enterprise before purchasing an interest; creditors are interested in the enterprise’s ability to repay obligations. Business enterprise managers need financial information to make sound business decisions. Governmental units need accurate financial profiles in order to tax and regulate. Analysts use this information to form opinions and forecast local or national economic profiles. Individual employees often have bonuses or options tied to enterprise performance.