Role of accounting in the daily lives of people in the society

Accounting is undeniably essential to most individuals. It serves a variety range of place in our society. Many researchers and writers have defined the role of accounting in the daily lives of people in the society. The primary purpose of accounting is simply to help people make decisions throughout their everyday lives. It provides service to different organizational bodies from a small time business to a multinational company.

Baysa and Lupisan (2011) defined accounting as a service activity. They said that the main function of accounting practices is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. They stated that the primary duty of accountants is to render services by providing information about economic entities that is measure in terms of money (p. 2).

In another accounting book, Manuel (2011) gave the definition of accounting as a language that communicates essential information for decision making (p. 9) . The author also noted that all businesses have one common factor: they all need vital information before making critical decisions. This is where accounting comes in as it plays a vital role in tracking down the activities and resources of a business and reporting back these activities in the form of relevant information (p. 2).

In another literary work, Abelada (2010) stated in one of his books that accounting is introduced primarily for a business enterprise. He specified that the practice of accounting has evolved in response to the need of business managers for relevant financial information necessary to run a business effectively and to guide them in making short and long term plans or making decisions. (p. 2) But Accounting is not limited only in business entities. Even simple individuals may make use of the accounting system.

When they borrow money, compute their take home salary, pay their income tax, buy a car on installment, or if they plan for retirement, they would be requiring accounting information. According to Abelada(2010) accounting can also be useful not only in business enterprises but also in any kind of organization that would be needing financial information. (p. 3) Accounting indeed has a variety of uses in many aspects of life. Whether in business transactions or in a simple individual’s life, accounting practices and principles is always present.