Question

how does accounting, finance and economics used together in order to move the organization forward in the future?

Answer 1

Accounting, finance and economics can be used together in a systematic manner to enable an organization to move forward in future.

Accounting is a significant aspect of any business and any organization and it provides information that is required to make and manage economic decision so that the company moves forward. Accounting enables making of financial decisions in an optimal manner. It is through accounting that income and expenses are properly tracked and statutory compliance is ensured. Accounting helps to determine the financial health of a business.

Finance will enable an organization to balance its choices and decisions with regards to its strategy along with the need to remain financially viable. Finance deals with issues of making optimal investments, generating maximum revenues, management of risks in an optimal manner, liquidity and solvency, capital budgeting etc.

Economics enables an organization to see the internal as well as external factors affecting its business. It enables the organization to make optimal use of its limited resources like land, labor and capital. It also better equips the organization to deal with micro and macro-economic factors in a manner that the business and commerce of the organization is only powered and propelled further. Factors and elements like monetary policy, economic growth and economic cycle, interest rates, inflation rate etc. plays a key role in determining the commercial success of an organization.

So we can see that accounting, finance and economics can be used together in a systematic manner to enable an organization to move forward in future.