Key concepts and principles of accounting include:

1. Double-entry system: This principle requires that every financial transaction must be recorded in at least two accounts – a debit and a credit account.

2. Accrual basis accounting: This principle requires that revenues and expenses must be recognized in the accounting period in which they are earned or incurred, regardless of when the cash is received or paid.

3. Materiality: This principle requires that only significant information should be reported in financial statements.

4. Consistency: This principle requires that accounting methods and procedures should be consistent from one period to another to ensure comparability.

5. Going concern: This principle assumes that a business will continue to operate for the foreseeable future, allowing for the reporting of long-term assets and liabilities.

These principles form the basis of accounting and are critical to financial management. Accounting provides relevant, reliable, and timely financial information to help organizations make informed decisions about their finances. Accurate financial statements provide management with the information needed to evaluate the financial health of the business and make strategic decisions. They also facilitate effective communication with investors, creditors, and regulatory authorities. Additionally, accounting provides the foundation for budgeting, forecasting, and financial planning, which is vital to financial management.