Nature and Scope of Accounting


Accounting has got a veritably wide compass and area of operation. Its use isn't confined to the business world alone, but its spread over in all the spheres of the society and in all professions. Now-a-days, in any social institution or professional whether that's profit earning or not, fiscal deals must take place. So there arises the need for recording and recapitulating these deals when they do and the necessity of changing out the net result of the same after the expiry of a certain fixed period. Either this is also the need for interpretation and communication of those information to the applicable persons. Only accounting use can help overcome these problems. 
In the ultramodern world, counting system is rehearsed no only by all the business institutions but also in numerousnon-trading institutions like Seminaries, Colleges, Hospitals, Charitable Trust Clubs, United Societyetc.and also Government and Original Tone- Government in the form of Megacity,Panchayat.The professional persons like Medical interpreters, rehearsing Attorneys, Chartered Accountantsetc also borrow some suitable types of account styles. As a matter of fact, counting styles are used by all who are involved in a series of fiscal deals. 

 The compass of account as it was in earlier days has experienced lots of changes in recent times. As account is a dynamic subject, its compass and area of operation have been always adding keeping pace with the changes in socio-profitable changes. As a result of nonstop exploration in this field the new areas of operation of counting principles and programs are surfaced. Public account, mortal coffers counting and social Account are exemplifications of the new areas of operation of counting systems. 

Nature of Accounting 

 We know Accounting is the methodical recording of fiscal deals and donation of the affiliated information of the applicable persons. The introductory features of account are as follows 

 1. Account is a process A process refers to the system of performing any specific job step by step according to the objects, or target. Account is linked as a process as it performs the specific task of collecting, recycling and communicating fiscal information. In doing so, it follows some definite way like collection of data recording, bracket summarization, finalization and reporting. 

 2. Account is an art Account is an art of recording, classifying, recapitulating and finishing the fiscal data. The word‘ art’refers to the way of performing commodity. It's a behavioral knowledge involving certain creativity and skill that may help us to attain some specific objects. Account is a methodical system conforming of definite ways and its proper operation requires applied skill and moxie. So, by nature account is an art. 

3. Account is means and not an end Account finds out the fiscal results and position of an reality and the same time, it communicates this information to its druggies. The druggies also take their own opinions on the base of similar information. So, it can be said that bare keeping of accounts can be the primary ideal of any person or reality. On the other hand, the main ideal may be linked as taking opinions on the base of fiscal information supplied by account. Therefore, counting itself isn't an ideal, it helps attaining a specific ideal. So it's said the account is‘a means to an end’and it isn't‘an end in itself.

 4. Account deals with fiscal information and deals; Accounting records the fiscal deals and date after classifying the same and finalizes their result for a definite period for conveying them to their druggies. So, from starting to the end, at every stage, counting deals with fiscal information. Only fiscal information is its subject matter. It doesn't deal withnon-monetary information ofnon-financial aspect. 

 5. Account is an information system Account is honored and characterized as a storage of information. As a service function, it collects processes and communicates fiscal information of any reality. This discipline of knowledge has been evolved out to meet the need of fiscal information needed by different interested groups.