Discuss accounting principles and applications for business and Essay

Discuss accounting principles and applications for business and personal use - Essay Example Accounting identifies the increases and decreases in spending and shows the major components of your spending. Thus if there are any excessive spending or and wasteful items being purchased, by identifying those, any corrective actions can be taken to get rid of that unwanted excessiveness. All of this will eventually help you to be compatible with your financial targets or budget. Accounting helps in an individual’s life as well, even it’s a professional life. Most of us are in habit of taking loans to fulfill our needs. And there are times too, when most of us are not having much attractive earnings or savings. In those times properly managing of financial resources is of high importance. If you are in debt, you need to first get rid of that because that may even affect your personal reputation and image. Accounting not only makes you more responsible towards personal management but positively affects your lifestyle as well by organizing your professional life with discipline. Accounting increases a person’s financial awareness. Now days, accounting is not that difficult as it used to be perceived before, with lots of calculations and paper works but after the development of many accounting software, accounting has become too easy and it is no more a thing restricted to finance professionals but even an ordinary man can operate it as efficiently as any finance guy can. The difference between a successful and not-so-successful individual today is of better financial management. Today, people are more categorized on the basis of their lifestyles and social classes and these two things are better attained with the possession of money, for which financial management is highly important. Even if one wants to succeed in life, personal management is one thing that makes enormous difference in the approaches that people follow to be successful and financial management is one the major component of personal management. And the essence