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Accounting And Bookkeeping Procedures That Are Most Useful In Personal Finance

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a. What is accounting and how does it help you manage your personal finances? b. Describe the three products of accounting and bookkeeping procedures that are most useful in personal financial planning. c. How could personal financial software assist you in your personal financial decisions? Prepare an essay in approximately 500-650 words that answers all three elements above. Cite references to material that you use in preparing the essay
Accounting is a systematic process of recording, identifying, measuring, classifying, verifying, interpreting, communicating financial information. This is done by counting, adding it all up. This manages to help us in our personal finances by assessing the current situation, stating where we are at present moment, and helping reaching our goals of where do we want to go. It help us measure any progress, calculate any return from the beginning, and it can determine the practical or realistic goals one can have after assessing the stand point in time. Accounting is a tool used in personal finance.
There are two methods of accounting that are most used today, …show more content…
The accounting equation is assets equals liabilities plus equity. The net worth is the value of assets owned after creditors’ claims are accounted for, or assets minus debts.
Personal financial software can assist me in my personal financial decisions by organize my financial information in order to make it more useful. To keep my recordings, collection of data, classification, and sorting of financial data as easy as possible. The software assesses me with summary reports as well as calculations for different views and contexts in financial planning. Some examples of the programs are: education and retirement savings, debt and mortgage repayment and income and expense budgeting.

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