Characteristics Of Accounting Information

It is known as accounting information to all those documentation (virtual or physical), account statements, income and expenses, tax receipts, (invoices, receipts, receipts of fees, etc.), that is, all the information that allows the good administration of a company or business, and allows the administrators of the same to classify, identify, measure, analyze, evaluate, and record, all operations and activities of an organization or economic entity, (company, trade, institution bank, etc.). It differs from non-accounting information, which may or may not affect the full development of a business.

Some characteristics of accounting information:

Its function.- Its functionality is to serve as a basis for making decisions; based on the financial data collected through databases (spreadsheets or notebooks) referring to the financial status of a company or business, and the consequent evaluations based on that information, this data influences current and future decisions within the internal management of the business or business.

Truthful information.- The accounting information must be truthful and reliable in order to be effective, otherwise there is a risk that when making measurements, projects and making decisions based on that information produces adverse effects on the finance.

Comparability.- This type of information allows comparisons to be made from one period to another, in terms of financial evaluations, which are carried out from time to time within a company.

Monetary value.- Accounting information intrinsically carries a monetary sense, that is, it is intrinsically linked to the monetary, fiscal and administrative sphere. of a company, business or financial entity, (which may well be a bank or other entity, as is the case of financial entities governmental.).

Care of expenses.- Possible future expenses or expenses are calculated as well as the expenses incurred are analyzed, using the information contained in spreadsheets and notebooks. The same happens with income, evaluating based on this data, what things can be modified to increase productivity or reduce company costs.

It is highly upgradeable. It is constantly changing, that is, it tends to be updated quickly, in relation to the new data that is obtained and to being compared, verified, denied or corroborated, by new data or by a more detailed analysis of the information obtained.

They are data from past events. Presents facts and actions already carried out, but that influence present and future decisions, in other words, accounting information, It always presents data on economic movements, and actions already carried out, but which, due to the results, are relevant for future Actions.