Accounting Practice of Daffodil International University

Abstract

In Bangladesh prior to 1992, there were only public universities to be seen. The people's Republic of Bangladesh developed the Private University Act in 1992 with changes made in 1996 after putting into consideration the necessity for higher education. Following that, we can observe what private universities are doing. Public and private universities are the two categories used to describe universities in Bangladesh. In accordance with a report from the University Grand Commission (UGC), 109 private universities and 53 public universities are operating to offer quality education. Due to the fact that public universities are funded by the government, they have no objections to students' tuition fees. Private universities, on the other hand, are not afforded this option and are forced to rely on tuition payments from students. The primary source of funding for private institutions' growth and functioning is tuition fees from students. The health of the operation as a whole depends on accurate financial situation measurement. Because of this, accounting is conducted correctly. Private universities must therefore follow proper accounting procedures in order to assess their financial performance and manage their funds effectively. Private universities will have operational problems if they spend extra money without understanding their actual revenue scenario. The accounting system is a critical component that is taken into consideration while discussing long-term objectives. Even for the university administration, making decisions will be challenging without comprehensive knowledge of financial records. And Accounting systems do this thing to keep proper financial records. Accounting is essential to operate an institute because it makes it easier to keep track of revenues and expenses, ensures legal compliance, and provides investors, management, and the government access to quantitative financial records which can be used to think critically. Three important financial statements are produced by records. 1. Information on the institution's profit and loss can be found in the Income Statement. 2. A detailed picture of your company's financial situation as of a specific date is provided by the Balance Sheet to the institute. 3. The funds generated and spent over a certain time period are reported on the Cash Flow Statement, which acts as a link between the income statement and balance sheet. Every institute has its own accounting department because of the necessity of accounting activity. Similar circumstances apply at Daffodil International University. Their Finance & Accounts Department is an organized accounting division. This division is accountable for managing its financial activities. This department manages all accounting-related tasks, including cash collection and expenditure. This division serves as the university's operational sustenance. This department keeps track of each and every transaction for the university and reports as a result. Therefore, the university administration can assess its financial situation and make wise decisions in light of it.