Financial Intelligence for Entrepreneurs System †MyAssignmenthelp

Question: Discuss about the Financial Intelligence for Entrepreneurs System. Answer: Introduction The main purpose of this statement is to study in detail about thefinancial accounting theory. Financial accounting theory or financial accounting can be defined as the specialized part of accounting that records, summarize, analyze even the little financial transactions of an organization(A 2017). In simpler words the recording of financial data of an organization to use it later as a source of information for future process is known as financial accounting. This project is more than an essay, it is a reflective journal in which the financial accounting theories will be discussed in four parts i.e. Record, reflect, analyze and new action. We will in this journal record the facts and information about financial accounting then we will see what it reflects and analyze and prepare a new action plan(Hussain 2015). I believe that the financial accounting is not only a specialized but a very important branch of account. As accounting is baseless if there are no financial aspects in it. Any organization in the world cannot operate successfully until the organization has a proper team or a branch that records the financial transactions of the firm and the work of the team can be referred as financial accounting(Pysh 2014). The recording of the financial transactions of the firm is done in order to know the financial standing of the organization. Hence recording of the financial accounting is very-important. It is not possible for an organization to interpret the firms profitability if it does not systematically record all the transactions of financial nature that occurs in day to day business operations. In business world financial accounting plays not only the role of recording transactions but also the role of portraying the image of the organization about its operations in front of the stakehol ders, so that they can know about the earnings of the company(Karen Burman 2008). Financial accounting theory or financial accounting is related to the recording analyzing and summarizing of the financial data of an organization. In this course I have personally developed a great understanding about the concept of financial accounting. Earlier I use to think financial accounting as only the recording of the different entries related to business but after studying this in our course I came to know about financial accounting in detail and the study of course has made an impact on me that without financial accounting it is not possible for an organization to tell its investors about the profitability of the firm. I found the most surprising thing while studying financial accounting that there are so many interesting things financial accounting has in its squad. Financial accounting is not limited to the financial condition of the firm, but it helps the organization into decision making as well. It gathers all the financial information, identifies and measures risk an d provides the firm with an accurate decision about investment projects and their-profitability(Tracy 2013). By studying the course of financial accounting i came to a conclusion that it holds an important part of the accounting world. For any business organization it is very important to perform financial accounting. As it tells the how much profit or loss is the business earning. There are three types of financial statements namely balance sheet, income statement and cash flow statement(Ittelson 2012). These statements not only helps the organization to record and analyze but also gives its creditors and other stake holders a true picture of the firms financial position. I think financial accounting is a vast subject or a branch of accounting, I was wrong earlier as I only use to take this course as just a normal part of accounting that is only limited to preparing income statements or balance sheets. I just hated preparing balance sheets and other statements But after studying this course in detail now I can say that financial accounting is more than the preparation of balance sheet, it helps the organization or an individual in making decision about various investment purposes and without financial accounting an organization does not know whether it is earning profits or loss. Now I can use all this information further in my life and into my start up business that I am planning to open up soon. Conclusion After going through all the required information on financial accounting, a detailed conclusion is prepared here. Financial accounting is indeed a specialized branch of accounting, and as it is written above it is much more than the preparation of balance sheet or income statement. If studied in detail financial accounting can help an organization reaching the top from the floor. Financial accounting holds much more importance than other types of accounting such as: Cost accounting, Tax accounting etc. Bibliography A, N 2017, 'Financial Accounting Reporting', Wall Streets Journals, vol 5, no. 10, p. 33, viewed 1 Jan 2016, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4712479/. Hussain, PMM 2015, 'International Journal of Accounting Finance', InderScience, vol 2, no. 100, p. 3. Ittelson, TR 2012, 'Financial Statements', Emeral Insights, vol 1, no. 50, p. 10. Karen Burman, JK 2008, Financial Intelligence for Entrepreneurs , 2nd edn, Harvard Business Press. Pysh, P 2014, 'Financial Accounting Importance', in S Berg (ed.), Warren Buffet Accounting, 5th edn, WB Publishers. Tracy, JA 2013, 'How to Read a Financial Report', Entreprenuers Weekly, vol 5, no. 120, p. 25.