Accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of the information. Effective accounting management provides financial information for managers for decision making process. Planning helps formulate plans for different activities and coordinated these plans into budgeting for the whole business. In addition, controlling produce performance reports that compare actual outcomes with planned outcomes.



  • Working capital
  • Current assets / Current liabilities
  • Cost control
  • Budgeting
  • Performance evaluation
  • &nbsp


  • Rising money
  • Sometimes organization needs additional money
  • Loan – bank /other group companies
  • Hire purchase/leasing
  • Equity finance
  • Investments from private individuals


  • Investment decisions
  • Investing the organization’s money
  • Purchases of assets
  • Marketing
  • Updating IT
  • Staff training and development

Investment decisions:

  • Risk

  • Affordability

  • Cost vs Benefits

Financial statement – fairy information about an organization that assist user in making economic decisions

Financial positions – Balance sheet

Financial performance – Income sheet

Cash flows