In the context of Entrepreneurship, accounting, finance and tax administration serve crucial roles in ensuring the sustainability and growth of a business.
Accounting: financial tracking and reporting:
- The primary aim of accounting is to accurately record and track all financial transactions. this provides a clear picture of the business’s financial health.
- It involves preparing financial statements (balance sheets, income statements, cash flow statements) that offer insights into profitability, liquidly and solvency.
Decision-making support:
- Accounting data helps entrepreneurs make informed decisions about pricing, budgeting, resource allocating and investment.
- It enables them to identify trends, analyze performance and forecast future financial outcomes.
