Scope of Accounting

The importance of accounting is not only for business organizations but also for individuals from households to government, non-government and various professions. 

1. Business Organizations : Business organizations are established with the aim of making profit. It plays an important role in determining the actual profit of a business for a certain period of time, depicting the assets and reality and informing about the transactions.



2. Non-profit Organizations : Any non-profit organization is not motivated by the aim of making profit but is established with the aim of providing services to its members and society. Such organizations need accounting to utilize the money received from donations and donations.

3. The Government : The government is also involved in various economic transactions. Government-owned organizations use accounting for the income, money received from donations, grants received from other countries, loans taken from financial institutions, employee salaries, allowances, etc.

4. Individuals and Professionals : In order to properly utilize money, individuals can prepare a family budget with the help of accounting, and people involved in various professions can use accounting to provide details of income and expenses.

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