The importance of financial accounting

- Knowing what happened in the company during the past periods, analyzing the current situation, and predicting the next accounting periods.

- Issuing accounting reports and financial statements.

- Estimating the profit and loss resulting from the company's main activity.

- Anticipate the company's investment range and identify its obstacles.

- Insight in making calculated financial decisions and avoiding risk.

- Estimating the company's liquidity and its non-fixed assets.

- Know the company's assets and compare them with liabilities.

- Access to the institution's sources of funds and sources of profits, and the extent of the percentage of its profits to the basic activity of the company.

- Dividend distribution to the board of directors and shareholders.

- Recording, tabulating, and summarizing financial transactions on a daily basis, posting them to more sustainable entries, ensuring that they are referred to at any time.

- Transferring information to those who need it to make decisions or to understand, whether they are inside or outside the organization.