ACCOUNTING AND ECONOMIC ANALYSIS: AN INTEGRATED APPROACH TO CALCULATING FINANCIAL INDICATORS

Аннотация

This article explores the topic “Accounting and economic analysis: an integrated approach to calculating financial indicators”. The article analyzes the relationship between accounting and economic analysis, as well as their importance in the process of calculating financial indicators. Accounting can clearly indicate the financial condition of the enterprise, and economic analysis can help with in-depth analysis of this information and strategic decision-making. Through this integrated approach, more efficient and reliable results can be achieved in the calculation of financial indicators. Keywords: finance, assets, liabilities, income, Operations, Financial Accounting, Management Accounting, qualitative analysis, quantitative analysis. Introduction. Accounting and economic analysis - an integral part of modern finance and economics. They complement each other and play an important role in assessing the financial condition of enterprises. Accounting provides the information necessary to control and report the financial activities of the enterprise, while economic analysis helps in making strategic decisions by analyzing this information. Accounting is the process of systematically recording, classifying and analyzing the financial activities, Assets, Liabilities, Income and expenses of organizations [1]. It helps to determine the financial condition, performance and results of an organization by collecting and storing financial information. Accounting Выпуск журнала №-19 Часть–4_ Февраль –2025 8 MODERN EDUCATION AND DEVELOPMENT is an important source of information for internal and external stakeholders of the organization. The main purpose of accounting is to correctly and accurately record financial information, as well as to provide this information to users. Through this process, organizations track their assets and liabilities, as well as their income and expenses [2]. Accounting serves as the basis for the preparation of financial statements, while these reports are an important source of information for investors, lenders, government agencies and other interested parties. Among the basic principles of accounting are such principles as continuity, prudence, accuracy and transparency. The principle of continuity implies the continuation of the financial activities of the organization over a long period of time. The precautionary principle, on the other hand, ensures that possible risks are taken into account in financial statements. The principle of accuracy, on the other hand, implies that all information is correct and clearly recorded [3]. Transparency, on the other hand, ensures that financial information is open and understandable. Accounting is divided into two main types: Financial Accounting and management accounting. Financial Accounting is aimed at providing the financial condition of an organization to external users (e.g. investors or lenders). In this type of account, financial statements are prepared, for example, a balance sheet account, a profit and loss account, a cash flow account. Management accounting, on the other hand, is aimed at providing the information necessary for internal management. In this type of accounting, processes such as cost analysis, budgeting and financial planning are carried out. An important aspect of accounting is the accuracy and order of calculations and documents. Each transaction or transaction must be confirmed by the relevant documents. These documents are, for example, invoices, contracts or bank receipts [4]. In the accounting process, each operation is recorded in two ways — this is called the principle of “double accounting”. According to this principle, each operation changes assets and liabilities at the same time. Выпуск журнала №-19 Часть–4_ Февраль –2025 9 MODERN EDUCATION AND DEVELOPMENT The importance of accounting is that it allows organizations to assess their financial condition and make strategic decisions. Organizations will be able to control their expenses, increase their income, and manage financial risks through accounting[5]. Also, through accounting, organizations can comply with the norms required in the implementation of tax obligations and the preparation of financial statements.. Accounting is based on the following basic principles: 1. Initial account-any financial transaction must be recorded in the initial account. This process will help to accurately record all the operations of the enterprise. 2. Correctness of accounting-accounting should correctly and accurately reflect all transactions. This, in turn, ensures the reliability of financial statements. 3. Period reporting-accounting should reflect the financial situation in a certain period (monthly, quarterly or annual). This is important for investors and management. 4. Financial statements-financial statements prepared as a result of accounting (balance sheet, profit and loss statements) are important in assessing the financial condition of the enterprise. Economic ana