People do business in order to make a profit. Even charities and not-for-profit organisations need to make sure that they use their resources in the most efficient and effective manner. Thus, the need to effectively manage the financial resources is common to all organisations. Decision makers in these organisations will need access to economic information based on which they can arrive at informed decisions about their organisational activities. Accounting serves this purpose by identifying, classifying and summarising, and presenting financial information in order to facilitate decision making and compliance with the law. It looks at ways in which businesses can maximise profits, save costs, and allocate resources effectively.

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