The Impact of Financial Accounting and its Reporting to Private Colleges in Bhavnagar Gujarat.

Abstract

Financial accounting and its reporting are authentic subject to discuss and it impacts to all businesses, industries, educational institutions by providing deep knowledge and understanding for accurate financial recording which results in accurate decision-making. Financial accounting plays a most important role in enabling clean picture, accountability, and long-term goals for colleges. Bhavnagar Gujarat is the region which has 1 University since 1978 named Maharaja Krushnakumarsinhji Bhavnagar University. In year 2000 only government colleges and constituents colleges were working but afterwords several grant-in-aid and more than 200+ private colleges established. Financial accounting makes aware to all business venture that how to maintain efficient records of financial transactions, it brings transparency to communicate with decision maker of an organisation. Financial statements such as profit and loss account, balance sheet and cash flow statement show clear vision of business financially which result trust building to its ultimate users. Private colleges are bound by rules of University Grants Commission with its regulations and time to time amendments. For new ventures and current institutions development investment decisions are considering as life blood. Due to underinvestment, overinvestment business cannot run appropriately. Financial reports help an institution to identify areas where resources are being underinvested or overinvested. It signifies better budgeting and improved management of funds. By care of financial records, educational institutes can manage expenditures. This helps in cost management for better decision-making regarding income source, investment in infrastructural development, improving facilities to staff, new recruitment etc... Perfect financial reporting facilitates private colleges to apply for grants, loans, government schemes and other monitory sources of fund from financial support provider bodies, banks, or private investors.  It also focuses on reporting for assessment and Taxation to minimize tax obligations such as GST and income tax.