Accounting information helps every department in an organization and use of accounting information can be summarized as follows:
This task can be done by assessing the past records of the customer which can be found in financial accounting system.
This task can be done by finding the relationship between sales and advertising expenses. Necessary cost and sales information can be obtained from financial accounting system.
All relevant cost information can be gathered from financial accounting system.
Accounting information such as sales amount and profit made helps to evaluate the performance of the sales department by comparing the actual data with the target provided by the budget.
When making the pricing decision accounting data has to be used to assess the cost of the product and pricing has to be done in such a way that company can make profits.
Human Resources Department
Actual labour cost can be found in financial accounting system. (Salaries, wages & other benefits provided)
The requirement for additional labour has to be predicted
Predicting the requirement of additional labor depend on the demand for the product. Predicting the demand for the product involves obtaining historical data from the financial accounting system and make predictions using time series or regression analysis.
When planning/forecasting for future period planning department need to analyze the past information to find out trends and seasonal factors. This past information can be obtained from financial accounting system.
Assist the budgetary control process
In comparing the budgeted figures with actual figures to obtain the variance the actual financial data has to be obtained from the financial accounting system.
When negotiating with suppliers for brtter credit terms the organization need to prove their credit worthiness. For this purpose necessary information about past transactions can be generated from financial accounting system.
For the purpose of controlling the cost relating to production, necessary cost related information can be generated through financial accounting system.