The importance of accounting sciences for decision making and their relationship with other sciences.

Written by :Diomer Antonio Galán Rincón.

Bachelor's Degree. Public Accounting / MSc. Higher Education Sciences.

First of all, a big greeting to all the friends of Steemit and especially to the members of this prestigious community of project-hope I will begin with a series of publications where I will develop several topics where we will touch on all the elements that are part of the accounting sciences, from its beginnings to the decision making through financial statements.

In this opportunity I will begin with the conceptualization of accounting as a science, its purpose and the relationship with other sciences.

When we talk about accounting we can say that it is a science that is responsible for analyzing, classifying, evaluating, quantifying, recording and summarizing in monetary terms all the operations carried out by the company and then presenting them through financial statements for decision making.

Its main objective is to be able to provide financial information of the company to internal users such as administrators, managers, employees, shareholders and external users such as future investors, suppliers, financial institutions, government regulators and the general public who are related to it and whose interest is to know the operational results and the real economic situation of the company.

Accounting is of utmost importance for companies since it can provide information on all routine activities of the productive activities, as well as the control of income and expenses, debt control and allows monthly comparisons for analysis and future planning.

When we talk about decision making is when a choice is made between several alternatives or ways to solve different economic or administrative situations within the company, we can say that in the accounting processes decisions are made at all times, the difference between each of these is the procedure or the way in which they are solved. Decision making consists, essentially, in being able to adopt one of the alternatives among the useful ones, in order to solve a current or potential problem.

To make a decision, no matter its nature, it is necessary to know and analyze the problem in the first instance, before being able to give a solution; in some cases it may be very simple and everyday, this process is done implicitly and is solved very quickly, but there are other cases in which the consequences of a negative or positive choice may have repercussions for the future in different types of context such as labor and economic that can lead to success or failure of the company, for this reason it is necessary to perform a well structured process that can give better security and information to solve the problem.

Accounting exchanges elements with other sciences, these are mainly of economic order, legal mathematical, belonging to the theory of information and the sciences of motivations such as:

*Administration:

Through the processes that establishes a good management in the administration not only of financial resources but also of human resources, administrative and organizations for an optimization of the same in the service of the economic entity

*Mathematics:

Through the accuracy that is implicit in its techniques of quantifications of income, costs, expenses and mathematical models that solve the financial problems of the company. The accounting procedure is essentially mathematical in nature, since many axioms and mathematical formulas are used in the resolution of accounting problems. Mathematics serves as a very valuable tool for accounting professionals, in the way of executing systematic accounting procedures.

*Statistics:

We can affirm that accounting is related to statistics by the use of statistical calculations that allow it to establish different types of accounting records that affect the financial statements. Statistics provides, as well as mathematics, purely quantifiable tools to better achieve its accounting objectives and to be able to report more accurately the events that have occurred.

*Computer Science:

It is related to the technological phenomenon that has substantially changed the ways of working and methods of accounting through the design and implementation of accounting information systems that help to reduce the time of delivery of information and closings of accounting processes, also offering a wide range of models and systems that go hand in hand with the technological evolution and accounting and tax legislations.

*Law:

It is one of the sciences most related to accounting sciences through its different branches:

-Commercial Law:It is where we find the regulations of everything related to commercial activities in general from the creation of a company until its liquidation, established in the Commercial Code, in which is typified the obligation that companies have to keep books for the registration of the operations carried out, under certain requirements of form and substance established in the same commercial code.

-Labor Law: This branch of law regulates all labor relations of a company or employer with its workers through the (LOTTT) Organic Labor Law, which establishes different obligations that the employer has with the workers and that the accounting has to register, such as social benefits, vacations, inces, banavih, among others..

-Tax law: It regulates all the obligations that the company has for taxes that are established in different laws, being one of the most important that is related to accounting is the income tax law, which regulates other major obligations that the company has and that the accounting technique and procedure help to determine such as sales tax VAT. And in relation to municipal taxes, the industry and commerce patent, where accounting establishes the respective records and specific treatments.

*Economics:

economics is related to accounting through the explanation of the phenomena that occur in economic cycles, establishing the facts that are susceptible to accounting records. In turn, there is a close relationship between the different branches of economics such as macroeconomics and microeconomics that help determine economic behavior for accounting records.

I hope you liked my article which is the beginning of a series of topics related to the accounting sciences and I would appreciate to know your contributions in the comments section.