All business and economically informed decisions are based on accounting information systems. In fact, accountancy has been deemed the ‘language of business and figure’. Whilst generally considered in terms of business interests alone, accounting also maintains a pivotal role in the economics of modern society.

Accounting is one of the primary vehicles of factual record keeping and is used within the economy as a means of making informed decisions that will yield positive results. These records and practices are employed by countries and governments to make monetary policies and to plan their economic activities. Its importance within modern society makes accounting and related studies, including the rg146 course, one of the most popular fields of study for jobseekers.


Allocation of resources

How should society allocate its resources?
There is increasing recognition of the important role accounting practices play in answering this question. Accounting has a major impact in the economy and society. Two areas that have risen to prominence in recent years are the role of accounting in environmental issues such as climate change, and allocation of resources for health issues.

Accounting impacts the distribution of resources in terms of who benefits and loses in allocations across many types of markets. By determining what is regarded as valuable or important in society, accounting has significant aspects on the culture of society and how we see certain things in the world. For example, it is accounting practices that make consumers recognize certain items as luxurious or worthy of expense.

Social control

Accounting calculations are practiced in social and cultural contexts and have significant impacts upon everyday life. Accounting is considered to be an instrument of social control as it affects the management of households, poverty relief and systems of education. In fact, accounting is deemed to be a ‘cultural phenomenon’, both a product and active participant of social relationships and interests.

While most people are aware of the traditional business accounting processes, most are unaware of the other forms of accounting processes that exist. These processes have significant impact on modern society and include:

  • Financial accounting
  • Management accounting
  • Cost accounting
  • Tax accounting
  • Government accounting
  • Healthcare accounting
  • Auditing

Informed decisions

Accounting is the practice of collecting, analysing and communicating economic information. This information is not restricted to business transactions, but rather extends to all forms of communication necessary for society to function effectively.

Accounting information assists users in making informed decisions in relation to important societal concerns, including the allocation of resources and urban development. This information is therefore an important influence in society, as it impacts on development decisions that have large and ongoing effects on major issues including the environment and employment.

National accounting

Accounting practices are employed by governments in order to determine key national figures including national income, national debt and the gross domestic product. These figures play an important role in managing the economy, which in turn has significant effects on the cultural framework of the country.

These figures have an impact on government policy and decision making in areas including health care, crime prevention and taxes. Sustainability accounting also has significant impacts on society practices that have been deemed as threatening to ongoing environmental sustainability.

Social accounting and sustainability practices reflect the values behind many concerns for the stability for society as a whole. There have been numerous initiatives by governments to including accounting practices to help inform decision makers about the effects proposed investments and activities will have on all type’s of society’s resources (human, natural and financial).

Accounting practices, therefore, have a significant societal importance within modern society. Pursuing further study in accounting practices means that you may not only influence business decisions, but also decisions that may affect society as a whole.