For an organisation, the most important task is managing the accounting system at the workplace (McLaney and Atrill, 2014). The accounting system of an organisation helps the management to calculate the financial growth of the organisation systematically.

Through financial statement analysis and planning, it is easy to identify the profit and loss statement as well as balance sheet of the company which are important for analysing the performance of the company in different period of time (Abdel, 2011). This further helps to understand the rate of growth of business, ratio analysis and develop effective decision for the company (Otley, 2016).

The key role of an accountant is to take care of the entire organisation by appreciating financial statements of the organisation. An organisation is always dependable over their financial statement, as this is the only factor that helps the organisation to know their financial outcome as well as strength.

Budget is a significant term in the field of accounting. It can be regarded as a significant process of the creation of a plan for spending money. A budget is considered as a formal statement regarding the financial resources that are kept for executing certain activities.