Financial accounting is essential to accurately keep track of the financial records for your organization. Financial accounting records give internal and external stakeholders an overview of the financial stability for the upcoming fiscal year.     

The primary function of financial accounting is to gather information and produce reports on an organization’s financial activity. They summarize transactions for a company, describing what company made the transaction with you and the date and amount of each transaction. Companies create financial reports of transactions to render information on how much the organization is worth.