Accounting's role in providing information for decision-making

 6. Accounting's role in providing information for decision-making to meet the needs of the organization, its stakeholders, and society in a complex operating environment.

It can be said that the role of accounting today is very important in providing information to meet the needs of organizations, stakeholders, and society in a complex operating environment (Hoggett, J.R., Edwards, L., & Medlin, J., 2022).

With an operating environment that is complex and affected by many factors as well as always fluctuating, accounting plays an important role in providing information, which must always be quick and accurate for the best results. can forecast market trends as well as upcoming risks and opportunities.

It can be seen that the current working environment has many innovations that directly impact the functions and tasks of accounting. For example, with the development of technology, changes in the working environment are becoming noticeable, it is easy to recognize that automatic accounting software makes accounting functions more and more accurate and precise. quickly, but that also brings a risk to accountants: accounting fraud, taking advantage of the development of technology, accounting frauds have also become sophisticated and difficult to detect and review, which can bring several risks to businesses that can cause financial loss or affect the reputation of the brand.

For parties related to businesses, the function of accounting in providing information also has strengths such as providing accurate and transparent financial information about the financial situation of businesses to help investors. Investors and owners can monitor the business activities of the business and thereby make assessments on reasonable investment decisions as well as strategies for the business. For employees, the information provided by accounting can help employees understand and evaluate the financial level of the business. For state agencies, such information helps make decisions about taxes to pay and ensure that businesses' business activities comply with the law.

But besides that, these functions also have some limitations such as the amount of information sent being too complicated or too slow, making decision-making difficult or slow, thereby leading to financial risks. for investors or business owners. On the part of employees and state agencies, financial information may not be fully disclosed, making it impossible for workers to evaluate the financial security of businesses or agencies. The state cannot determine the exact amount of tax payable or whether the enterprise complies with the law or not.

Reference

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