Accounting: A Language that Not Everybody is Using

     The vocabulary of accounting is largely used to communicate financial information about profit-seeking enterprises to interested persons, both within and outside a business firm (Kaluza, 1980). This is why, it is often referred to and acknowledged as the language of business.

     Regardless of size, type, and form of ownership, all profit-seeking firms look to accounting to provide up-to-date financial information about all aspects of their business operation. Accounting information is useful to anyone who must make decisions that have economic consequences. Hence, it is very necessary for effective management.

     Yet not all business firms, particularly those small to medium enterprises, actually realize the importance of accounting. Most of them just think of it as just a way of complying with the government and other interested parties such as lending institutions’ requirements. “That is, in simple terms, for them to be just permitted by authorities to operate their business( Gogola, 2008).”They just furnish financial reports for the sake of securing them, not really understanding how those reports can benefit them if viewed in the right perspective.

     Small businesses don’t need accounting until it gets out of control – this is a myth (Viteri, 2010). Every business in different industries must have something to lean on for decision-making purposes, not only on tough times but whole throughout the year of its operation. That is, to ensure that every decision made is for the improvement of the sustainability and profitability of the business. This is why there is a need to put up a standard to make sure that there’s uniformity of the quality of the performance of accounting process. One of the series of pronouncements issued by the Financial Reporting Standards Council is the Philippine Accounting Standards (PAS).

My awesome Business Research groupmates.

This is actually the unedited background of our study which is  entitled, "The Effects of the Level of Compliance to PAS 41- Biological Assets to the Profitability of the Fish Cage Industry in Buhi, Camarines Sur." Kudos to my groupmates. All the hard works had a wonderful fruition.