Until now, the role of accounting is very important in helping decisions relating to the economy, and this important role is increasingly recognized by many business people and companies. Accounting plays an important role in assisting management tasks, especially when carrying out oversight and planning functions. Broadly speaking, the meaning of financial accounting focuses on recording financial transactions of businesses or companies. Recording in question is data collection that is done regularly according to the system and complete. The financial transactions recorded are also specific in a business and in a certain period of time. Meanwhile, financial accounting means a part of accounting that is closely related to the preparation of financial statements.
Financial Accounting Standardization
Accountants in a company are usually tasked with carrying out various records or financial statements. The financial statements that are presented must be in accordance with generally accepted accounting principles, or must be in accordance with the Statement of Financial Accounting Standards (PSAK) regarding instructions and procedures that contain regulations regarding the recording, preparation and presentation of financial statements that refer to theories about interpretation and deep reasoning by an institution called the Indonesian Institute of Accountants (IAI).
PSAK began to be implemented in Indonesia in 1994. However, in the development of accounting standardization by the Financial Accounting Standards Board (DSAK), it cannot be separated from the development of international accounting standards by the International Accounting Standards Board (IASB). International Financial Accounting Standards in the process of convergence in full with the International Financial Reporting Standard (IFRS) issued by the IASB, is a standard of financial statements that can be accepted internationally and began to be applied in Indonesia since 2012.
Financial Accounting Function
Financial accounting is related to the preparation of financial statements for outsiders, such as shareholders, suppliers, creditors and others. Means, financial accounting is a system that regulates the recording of transactions made by companies, to compile reports on transactions that occur. So it can be concluded as an activity that includes the process of recording to analyzing the company’s financial data and products produced from these activities in the form of financial statements. The financial statements consist of financial statements that are used for the benefit of internal and external parties of the company.
One of the main functions of accounting is to provide information about a company’s financial condition. With financial statements, it can be seen the financial situation in a company and any changes that have occurred in it. Information about company finances is needed by the management team. Because it can be used to help in making or making decisions, these decisions can affect the state of the company later. As for some general accounting functions, including the following:
To find and calculate the profit or loss that has been obtained by the company.
To provide useful information for company management.
Can help determine the rights for each party who has an interest in the company, both internal and external parties.
To oversee and control various activities that occur at the company.
To assist the company in achieving the specified targets.
Stages of Accounting Learning
There are several stages in accounting learning that need to be understood by business people or entrepreneurs. Among them are as follows:
Introduction to Basic Accounting, namely understanding of the Fundamentals of Accounting Basics, Accounting Cycles, Formulation of Accounting Codes, Recording of Transactions and Estimates, General Journals, and Making Financial Statement Working Papers.
Intermediate Financial Accounting, Cost Accounting, Financial Report Preparation, which is an understanding of Accounting and Financial Procedures, including cash and cash equivalent policies and procedures, inventories, receivables, fixed assets, debt and taxes.
Advanced Financial Accounting, learn about the Formation of Partnerships or Business Combinations, Integrity of Presentation of Financial Statements, and Analysis of Financial Statements. In addition, the preparation of the Consolidated Financial Statements, Changes in Share Ownership, Consignment Sales, Liquidation of Installment Sales and Share Investments.