FINANCIAL ACCOUNTING AND BUSINESS DECISION-MAKING

Abstract

Abstract - Financial accounting plays a crucial role in providing relevant, reliable, and timely financial information to stakeholders for effective business decision-making. It systematically records, classifies, summarizes, and reports financial transactions of an organization, enabling managers, investors, creditors, and regulatory authorities to assess financial performance and position. In today’s dynamic business environment, decision-making relies heavily on accurate accounting information supported by financial statements such as the balance sheet, income statement, and cash flow statement. This paper examines the relationship between financial accounting and business decision-making, highlights the importance of accounting information systems, explores decision-making tools derived from financial reports, and discusses challenges faced in ensuring accuracy and transparency. It also emphasizes the role of modern technologies such as Artificial Intelligence (AI), Big Data, and ERP systems in improving accounting-based decisions.

Keywords: Financial Accounting, Decision-Making, Financial Statements, Business Performance, Accounting Information System, Financial Analysis.