The accounting function is acknowledged as a core component of any business. Above all, it allows tracking of the venture's profitability and determination of the underlying trends integral to daily management responsibilities. It also facilitates the company, providing complete and accurate financial information to management and investors. Additionally, it is necessary for preparation of any and all tax returns.

The most common outputs of accounting activities are the income statement, the balance sheet, and the cash flow statement. Cash budgeting and management and the establishment of accounting information systems are also central management responsibilities. Financial ratios, which can be calculated once the financial statements are compiled, provide important analytical information to support managerial decision making. To that point, current accounting software packages can generate financial reports ...

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