A Good Accounting practise is Vital to a Company's Success Research Proposal

A Good Accounting practise is Vital to a Company's Success - Research Proposal Example The key to the success of a business lies in the true accounting of the above elements in financial accounting. The public put trust on the transparency of the accounts and it will tell upon the good will of the company. If the accounting fails to meet the situations, the company will perish. Therefore, the qualitative characteristics of financial statements such as understandability, relevance, reliability and comparability should be enforced while preparing the financial accounting of a company. The qualitative characteristics will provide the necessary information to the creditors as well as the investors for keeping a watch on the performance of the company. This study is focused on the financial accounting practice related to a company with a very small investment. For a company instituted with a capital of â‚ ¤1000 the quantum of financial transaction will be very low. The labour management as well as the administrative costs will also be put to the minimum, accordingly. Here, the role and concern of the stakeholders are comparatively seen at the bottom level. The purpose of this research is to show that a good accounting practice is vital to the success of a company. In order to establish this, the different aspects of accounting practices are to be taken into consideration focusing on how a good accounting practice can be conceived and implemented, in the case of a small venture which has a very low capital and low labour cost. To achieve this, it is necessary to analyse the general principles and possibilities of a good accounting practice and the way how it is applied to a small concern towards maintaining its existence. In business, the entrepreneur is at stake because he has invested money to run the business. In big companies with large investment, the public may also put money in the capacity of share holders. This