Accounting is a well-known term, but still little used. Many companies, institutions and organizations know their importance and hire the services of specialized accounting offices to take care of their finances. However, it is not only the companies and large organizations that need to know and perform the accounting, since it is necessary for all, being responsible for allowing greater control even on personal finances.
Accounting refers to the recording of all the movements of a given entity, whether legal entity or physical, that is, registration and verification of the results obtained within a period, which will serve as a basis for directing the next steps of the institution.
In this way, it is through accounting that it is possible to know the profits and losses, and thus realize how much it is possible to gain in a certain space of time. Knowing these values, you can also plan the next steps to increase the gain.
Like accounting, spending control is also a measure of great importance for a company, organization or institution, because without it it is virtually impossible to know how much is spent and how much is earned, and yet whether the gain is actually greater than the spending.
Although many people confuse and believe that accounting and expense control are different things, or that they are the same and that the practice of one of them exempts the practice of the other, accounting and cost control are really different, but they should always walk together, as a way of complementing.
But after all, what is the difference between accounting and cost control? Why should accounting be integrated with cost control? How one interferes in the other?
First, accounting refers to the general control of the financial situation, that is, one obtains the results of a period from the analysis of all the movements, to see if there was a profit and how much it was. Meanwhile, cost control refers to the recording and control of all of the company's expenses, from the cheapest to those requiring a larger investment.
Knowing this, it is easy to see that these two factors are directly interconnected. Accounting calculates profits, while controlling spending, in turn, contributes to the economy, avoiding spending on unnecessary things, increasing profit.
In this way, being able to integrate the accounting with the control of the expenses can be a real challenge, but that brings great contributions to the financial situation of the company, institution or organization in which it is practiced. This is how you can get a better control over all the expenses, get to know each one of them and then through accounting, analyze what really is necessary, improving the management of financial resources, increasing the profit of the institution.
So the key to practice accounting and control spending is to know how to unite them, in a process in which one complements the other, and both serve the same purpose, which is to bring positive results to the financial sector.