Question

how can accounting data play a role in addressing challenges facing businesses today?

Answer 1

Perhaps individuals do not consider accountants important as much as they are,but businesses will have to value their services and they don't have an option otherwise.Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.The income statement provides you with information about the profit and loss.The balance sheet gives you a clear picture on the financial position of your business on a particular date.
The cash flow statement is a bridge between the income statement and balance sheet and reports the cash generated and spent during a specific period of time.Your financial records reflect the results of operations as well as the financial position of your small business or corporation. In other words, they help you understand what’s going on with your business financially. Not only will clean and up to date records help you keep track of expenses, gross margin, and possible debt, but it will help you compare your current data with the previous accounting records and allocate your budget appropriately.With the above ways accounting data play a vital role in businesses today.