The Role of Accounting in Nigeria
The Role of Accounting in Nigeria

In Nigeria, Accounting plays a key role in our Business, personal finance and even to the Government. So many business would have been liquidated if not for Accounting and audit. There are many roles accounting play in Nigeria, such functions include:

1. HELP ECONOMY IN PLANNING
Accounting help an economy to plan on how to mobilize its resource because accountants conducts feasibility studies and reports. For the feasibility reports, an economy sees how best to utilize its resource.

2. PROVIDING USEFUL INFORMATION FOR THE DECISION MAKING
Accounting provide information that is useful in decision making affecting resource allocation at all level in the society.

3. POSSIBILITY OF RECORDING PURCHASES AND SALES COMPUTER PAYROLLS, ETC
Accounting makes it possible for the people that are working in its field to be able to record purchases and sales, computer payroll or obtain cost and expense in the business forms. Some work as accountant, other in tasks involving.

4. GIVES IDEA ON HOW TO USE ACCOUNTING INFORMATION IN PERIOD AND BUSINESS LIVES
Another interesting role of accounting in Nigeria is that most people that are working in the field of accounting must have idea of how use accounting information in their personal and business lives.

5. FOR DECISION OF EFFICIENT ACCOUNTING SYSTEM, THE PERFORMANCE OF AUDIT
Accounting includes not only the maintenance of the accounting records but also the decision of efficient accounting records but also the decision of efficient accounting systems of performances of audit and interpreting of accounting information.

6. HELPS ECONOMY TO OPERATE AT OPTIMUM LEVEL
Accounting help an economy to operate at optimum level. This is because accountants ensure that resource are obtained economically and use effectively and efficiently in this way, accountant help ensure that all the resources of an economy are mobilized and put into optional uses.

7. HELP POTENTIAL INVESTORS TO CUT THEIR INVESTMENT INTO OPTIMAL USE
Though the knowledge of accounting, the accounts help potential investors to put their investment into optional uses. They do this by providing adequate feasibility reports with which they guide would be investors. They help to increase the investment inflow into an economy.

8. ENABLE GOVERNMET TO IMPOSE TAX ON PROFIT
Government among other thing require accounting information will provide it with a guide on the ability of an organization to meet its tax.

9. ACCOUNTING IS USED TO KNOW THE EXTENT OF BUSINESS PERFORMANCE AND PROFIT MADE
The management is responsible for overall position of an organization. They are easily responsible for the progress or failure of a business and as such use accounting information to asses the extent of their performance which of course of determined by the amount of profit made and the financial criteria.

10. HELPS TO DETERMINE THE TOTAL VALUE OF THE OUTSTANDING DEBTOR AND CREDITOR BALANCES
The role of accounting under the control account helps us to determine at a glance the total value of the outstanding debtor and creditors balances, the receipts from debtors and payments to creditor, the discount allowed, received, the figure of bad debts etc.

11. HELPS TO LOCATE ERRORS IN THE FINANCIAL STATEMENT
Accounting help in the financial statement and it is the control account that normally does that. It helps to pin down errors to particular points instead of having to sieve large volume of accounting document in search of errors, the control accounts will help identify the particular document containing errors.

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