Lee High School

How is accounting information used to impact business decisions?

Final Draft

Daisy Sanchez-Parada

Senior Capstone

Peter Foote

April 13, 2017

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Daisy Sanchez

Peter Foote

Capstone Research

March 16, 2017

Accounting Impacting Businesses

All people face countless decisions every day. Some of these decisions will be mistakes.

People do not want to make these mistakes, but they are bound to happen. Learning from these

mistakes, can help improve future decisions. When dealing with numbers they can relate to

personal decision or business decisions, these numbers and mistakes can impact people's lives.

Information gathered by accountants can impact and influence business decisions.

Accountants collect accounting information and keep track of the financial status. Also

track everything that comes into the business and out of it. It helps compile data to show how

well a company or a business is doing at any point in time (Bradstreet,2017.) That information

is used to keep track of how the business is doing financially to have the money balance and see

if overall the business lost or gained money. From there, information is doubled check and make

sure if any changes have to be made inside the business with the information given. With that

being said Mr. Bradstreet noted accounting is basically, a giant department meant for

organizing to have everything under control and make sure decisions are made correctly.

(Bradstreet, 2017.) They file everything in general journals and other journals Having the

information in a file, the organization keeps everything in there place. Having certain journals
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and technology programs are something that's been introduced to use and keep track of the

finance now that technology is evolving.

Accountants register what is called transactions of items purchase, items owe or own. To

see if the money is balanced and be sure to have the exact money that has been kept tracked of. If

not to be able to go back and check and balance it out. From what they have inside the company

is then use as their favor when handling business. Meaning material wise is an advantage to

using when is owned. Companies from there manage the resource they have the most reasonable

way (Rodriguez, 2017.) Taking what they have and making profit out of it accounting methods

of value, such as earnings per share, growth in profits or return on equity, are increasingly seen

as being flawed for these reasons this comes from taking the correct decisions and maintaining

the business at the top (Shareholder Value Analysis, 2005.) Trying to make a better choice and

see how it can be improve or maintain the way the process has been functioning. Seeing an

increase has always been a goal for a business. With the technology advancing it makes a great

impact for the companies from there it can expand and improve the corporation. Welcoming new

resources for the firm like spreadsheets, helps even keeping track of your own personal finance

(Bradstreet,2017). Having new technology assist the corporation to up with a decision inside a

business. The organization of the data collected is set up in a more fashionable way and helpful

way.

Using all this type of information, impacts the decision that the business makes. Knowing

how much their is inside the company to see if changes could be made like mentioned before,

depending on the finance. This system used accounting system has attracted significant

attention since it is the system that supplies appropriate information enabling managers to
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continually adjust their business activities in response to their corporations' environment

meaning it does a lot for a business that gives the last clarifications to make a final decisions and

be productive about it (Saadi and Kamal, 2012.) From everything gather by accountants it sends

the message to financial professionals that they must transform data into information--the critical

element in decision making (Barsky and Catanach, 2001.) Decision making that is noted from

the last results seeing and given from the accountant to notify the rest of the co-workers and

make that last decision that will help to improve the future of a business and help build profit.

Going from when an accountant collects the information to, what tools is needed for that

data to be collected, to bringing it to a final decision of going through a process and having

everyone collaborate to make the last decision. Being sure the decision made would be a profit

and not an expense to the business. That is how big of an impact accounting information is to a

business. All the information collected is financial. Being able to maintain a balanced account to

make any healthy decision for a business for it to function correctly.

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Work Cited

Barsky, Noah P., and Catanach, Jr., Anthony H. "Provide Insight Or Face Extinction." Strategic

Finance, June 2001, p. 50. Academic OneFile, go.galegroup.com/ps/

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Bradstreet, Marcus. Email interview. April 12, 2017.

Halbouni, Sawsan Saadi, and Mostafa Kamal Hassan. "The domination of financial accounting

on managerial accounting information an empirical investigation in the UAE."

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"Shareholder value analysis." Managing Information and Finance, Chartered Management

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Venegas, Roberto Rodriguez. "The impact of e-accounting on Mexican accounting firms."

European Scientific Journal, vol. 13, no. 1, 2017, p. 71+. Academic OneFile,

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A484157262&it=r&asid=abab9ba4df288f52039866dfce9f73cb. Accessed 12 Apr. 2017.