The importance of accounting on organization’s effectivesness

Project Abstract

Accounting plays a crucial role in enhancing an organization's effectiveness in various ways. Firstly, accounting provides a systematic way of recording financial transactions, which enables organizations to track their financial performance accurately. This tracking allows for informed decision-making regarding resource allocation, investment opportunities, and budget planning. Secondly, accounting helps in ensuring compliance with legal and regulatory requirements by providing accurate financial reports that are required by stakeholders such as investors, government agencies, and creditors. Thirdly, accounting facilitates performance evaluation by generating key financial ratios and metrics that help in assessing the efficiency and profitability of the organization. This evaluation is vital for setting benchmarks, identifying areas for improvement, and measuring progress towards organizational goals. Furthermore, accounting helps in enhancing transparency and accountability within an organization by providing clear and reliable financial information to stakeholders. This transparency builds trust and confidence among stakeholders, including investors, employees, and customers. Additionally, accounting aids in risk management by identifying potential financial risks and implementing controls to mitigate them. By conducting financial analysis and forecasting, accounting enables organizations to anticipate and prepare for economic uncertainties, market fluctuations, and other risks that may impact their operations. Moreover, accounting contributes to strategic planning and decision-making by providing financial insights into the organization's strengths, weaknesses, opportunities, and threats. This information is essential for developing long-term strategies, setting realistic goals, and evaluating the feasibility of new projects or initiatives. Accounting also plays a critical role in resource management by tracking expenses, monitoring cash flow, and optimizing financial resources to achieve cost-efficiency and profitability. By analyzing financial data, organizations can identify cost-saving opportunities, eliminate inefficiencies, and allocate resources strategically to support growth and sustainability. In conclusion, accounting is a fundamental function that significantly impacts an organization's effectiveness in various aspects. From financial record-keeping to performance evaluation, risk management, strategic planning, and resource management, accounting provides valuable insights and tools that are essential for achieving organizational objectives and ensuring long-term success. Organizations that prioritize accounting practices are better equipped to make informed decisions, adapt to changing environments, and drive sustainable growth in today's competitive business landscape.

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.0 &nbsp; &nbsp; BACKGROUND OF THE STUDY</strong></p><p>Universally, it is well known fact that the management and control of public fund determine the success of all governmental activities and it is also at the heart of government administration hence the need for an acceptable accounting system that will comprehensively after solution to the accounting problem of the government and society.</p><p>The management and control of public fund are governed by the finance (control and management) act of 1988. this was as a result of the constitutional amendment of 1957 which in settee &nbsp;subsection 154A to E into section 154 which deals with the operation of the consolidated revenues fund. The principles of this act forms the base of finance act which had s slight change in the 1976 and 1989 constitution. Furthermore government accounting is regulated by section 129, 148 of the constitution laws enacted by government. In power, the fiancé (control and management act of 1958 and by decrees and acts which were promulgated into laws.</p><p>The federal ministry of finance performs the duty of management and control of public fund, which is directly the peculiar responsibility of the treasury now referred to as the office of the Accountant General. The treasury functions and duties are streamlined to asset of guide where expenditure and receipts for the year hence, no receipt or expenditure are transferred to the next accounting period.</p><p>The rules and regulation governing the accounting practices (management and control public funds) are contained in the financial regulation treasury accounting manual and treasury circulars</p><p>According to this financial regulation (FR 519) the provision stated that “Before making any payment at sub accounting office will satisfy immensely so far as he is in a position to do so that</p><p>a. &nbsp; &nbsp; The expenditure has been authorized by warrant and the voucher correctly classified in accordance with the estimates.</p><p>b. &nbsp; &nbsp; The information furnished on the voucher is correct in all particulars, the certificates on the voucher signed by the proper officer</p><p>c. &nbsp; &nbsp; &nbsp;All proper deductions from salaries or pension accounting of contribution repayment of advances or other liabilities have been duly made.</p><p>These basic functions are services rendered by the treasury.</p><p><strong>1.1 &nbsp; &nbsp; STATEMENT OF THE PROBLEM</strong></p><p>The treasury as a custodian of public fund is responsible for providing a retailed of all public and that federal ministry/Department being part of the treasury is also vested with same responsibility.</p><p>However, the treasury is faced with number of problems that tend to under the effectiveness of accounting system.</p><p>The following problems are therefore identified with a view to finding this solution so that credible accounting system will re-sure.</p><p>a. &nbsp; &nbsp; Inadequate staying</p><p>b. &nbsp; &nbsp; Inadequate method of revenue collection and control</p><p>c. &nbsp; &nbsp; &nbsp;Delay in the preparation &nbsp;of final account &nbsp;monthly transcript</p><p>d. &nbsp; &nbsp; Delay in the preparation of bank reconciliation statement</p><p>e. &nbsp; &nbsp; &nbsp;Late remittance cash transfers</p><p>Consequently, this research work is intend to find solution to these problems that militate against the efficient and effective implementation of accounting systems in the government treasury.</p><p><strong>1.2 &nbsp; &nbsp; OBJECTIVE OF THE STUDY</strong></p><p>Reference to the numerous problems facing the treasury in the quest to have an effective accounting system in pursuance of nations building this work is aimed at ascertaining the importance and significance of this government accounting system an identify causes of this ineffectiveness.</p><p>More so, this study is aimed at analyzing the following</p><p>a. &nbsp; &nbsp; The role and responsibility of the accountant general office in ensuring this, an effective accounting system and proper accountability for public funds</p><p>b. &nbsp; &nbsp; The importance of accounting principles on the government and the public in general with regards to its effectiveness.</p><p>c. &nbsp; &nbsp; &nbsp;The extent of compliance with financial regularities and treasury circulars on disbursement of fund by persons or authorities entrusted with such responsibility determining the extent and damage which fraud misappropriation and embezzlement of such public fund have caused and persisted in the organization.</p><p>d. &nbsp; &nbsp; Funding solution by not any minimizing but eliminating such bad practices completely.</p><p>e. &nbsp; &nbsp; &nbsp;The cause of delay or absolute neglect in the implementation of the accounting principles, rules and regulation.</p><p>f. &nbsp; &nbsp; &nbsp; Investigate to what extent under staying or inexperience and unskilled stay have contributed to poor output of the treasury.</p><p><strong>1.3 &nbsp; &nbsp; SCOPE OF STUDY</strong></p><p>This study covers the responsibilities and duties of federal ministry/department and implementation of the accounting principles rules and regulation for effective and efficient performance . the duties includes the compliance to the treasury requirement, the enforcement of the rules and regulation. In the financial regulation so as to always produce proper and credible account of public fund. The importance and effectiveness of this accounting system to the organization and finally the shortcoming of the accounting system on organization of any.</p> <br><p></p>