The formation of the assets and resources of the enterprises, the way in which the assets and resources are used, the changes in the existing assets and resources as a result of the transactions made by the enterprises, the provision of information explaining the financial status of the enterprises, and the transmission of the provided information to the necessary persons or institutions.

The concept of accounting has an importance that affects all institutional formations. When you look at the concept of accounting in a simple sense, you can briefly perceive it as keeping an account. This concept, which is needed by every formation from a nuclear family to a corporate firm, can have a much more complex structure in corporate structures. Therefore, in all small, medium or large-sized companies, there is a staff member who deals with accounting.

It is used to help managers in their decisions by analyzing the data obtained by performing general accounting and cost accounting.

Accounting, which operates as an information and control mechanism, may contain differences in accordance with the structure of the enterprises. While income and expense tracking, debt and receivable control and tax follow-up are sufficient for small-scale enterprises, a much more comprehensive follow-up mechanism such as reporting and analysis is required for large-scale enterprises. Every activity of commercial enterprises serves a purpose. The accounting activities of the enterprises are in this way and it plays an auxiliary role on the way to the goal of the enterprise.

List the purposes of accounting in general as follows, Permanent record. Companies may want to keep records of their transactions for a long time. These records can be kept for many purposes and archiving the records is beneficial to the company. The permanent record purpose of accounting is the equivalent of this situation. Credit worthiness. They should be able to monitor the company’s profit and loss status and receive daily, weekly or monthly activity reports as a result of commercial activities. Efficient use of resources.

Functions of accounting; It consists of 4 titles: Recording, Classification, Summarizing, Reporting. Recording Function of Accounting It is the recording of financial transactions in the accounting book based on certain documents in accordance with the accounting system. The recording function is the most important function of accounting. If the accounting records are not kept carefully and accurately, other functions lose their importance.