Why accounting is important for a company?

What is happening in organizations financial condition? To know this it is important to know accounting and accounting process. Accounting performs few valueable tasks for organization. The major activities of accounting classified into three groups. These are identifying, organizing and communication. Knowledge of accounting identifies, organizes and communicates the various economic and financial event..In a business accountant first identifies the economic events that is related with the business. The example of economic event of a company is selling of the product. Sales of a brand car in this case a suitable example of economic events.The second activity of accountant is to record the information. This recording  includes summring, organizing and classifying the events. The third accounting activity is communicating the accounting information. The communicating of an accounting event includes analysis and interpretation. The record of accounting activity are done systematically and chronologically. Analsis of the data includes ratio analysing, percentage calculation, graphs, etc. On the other hand interpretatio includes explanation, meaning and limitation.HHence, in every activity of bussiness the knowledge of accounting is important.