Accounting banking are considered to be among the most important constituents of financial market. Accounting is the department in the organizations that is vital for the business survival. For any business, its shareholders are of prime importance because these are the people that make up the business and thus possess higher interest within the business. It is necessary to keep them well informed and updated about the company’s current financial position from time to time. Accounting is the tool that performs this function. Accountants in a accounting department of a company prepares financial statements, make proper analysis and convey this information to the users i.e. stakeholders.
Accounting is also one of the earliest means for managing money for the businesses. Traditionally, the purpose of accounting was just to enhance the remembrance of business owner and to keep record of daily transaction in a poorly written form without any significant calculations. But today, the trend has been changed. Accounting banking is usually referred as to the tongue of the business. Since it is the mean of exchange of financial information of the company among its external and internal users, accounting has moved towards its much advanced level because of its immense significance. All the future investments and financial decisions about the business operations are almost entirely dependent upon the results that the accountants of the company prepare and present each fiscal year or even quarter. The information that is provided as a result of accounting banking is not only crucial for the share holders but it also helps the employees and customers of the organization up to larger extent. More and more advanced accounting trends have been emerging to meet the growing need of managing problems of accounts within a company. This includes introduction of ERP software to increase accounting function efficiency, more advanced statistical techniques and outsourcing.
Like accounting, the other sector that is the significant contributor towards any economy is the banking sector. In some of the economies, banking is considered as the backbone of the financial market. For the smooth functioning of the markets, banks play the major role in term of interacting the customers having lack of capital with those investors who possess surplus of it. Accounting Banking has also been included among the older invention, however, the recent trends and development has made some great innovations within this sector and these developments are still on their way to be improved further.
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Today, accounting banking sector in every economy encounters tough competitions even within domestic market. To cope with competition and to get higher market share, the latest trends that banks have been adopting include introduction and use of modern and newest technologies, customization opportunities of products and services according to each customer’s profile, innovation and comfortable offerings, focusing on niches rather than catering the entire market and increasing their excess to international economies and financial markets as well. With more globalization, more competition and modernization is predicted to be seen in the banking industry of almost every other country.