The Accounting Activity – a Basic Element in the Strategic Management of an Organization

Accountancy deals with the measurement, registration and control of the most important parts of business. Accounting is a central activity in a business’ economical life. The role of accountacy becomes even more important in modern economy, which relies on information. Due to the fact that resources are insufficient, chosing between several alternatives is necessary, and information provided by accountancy is needed to identify the best alternatives. Considering the importance of the financial – accounting information in making decisions, the quality of that information is vital. In contemporary economy, which is in a perpetual transformation, spectacular transformations are carried out in a short period of time based on financial decisions taken by using accounting information and based on its relevance and accuracy. If this information is proved to be untrue for the economic events based on which they have been generated, or are not correctly understood, the result of the decisions will be far from the expected one.