What is accounting

What is accounting - What is accounting? Accounting is an...

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What is accounting? Accounting is an information process , i.e. a method of processing financial information for different users. Accounting is often been called ‘the language of business’ as it is the means of communicating financial information. It provides a way of recording, measuring and describing economic activities. The accounting cycle refers to the processing of information from source documents to financial statements. The accounting function involves identifying, gathering, classifying, recording, summarising, analysing, reporting and communicating financial information. Accounting is practical tool used by many in varying jobs. People running a business need an understanding of accounting to help them make sound decisions about their business. The Role of an Accountant As the commercial world has grown in size and complexity, the importance of the accountant has also increased. The accountant's role has changed as the number of interested parties has grown. The accountant must prepare information designed to meet a wide variety of needs and expectations and is responsible to the users of that information. The accountant's role is dynamic, important and varied. The principal role of an accountant is to report on the performance of a business. This can involve tasks such as: Designing, implementing and managing systems for accurately recording and classifying transactions and other data. Using information obtained to prepare accounting reports which show the financial performance and position of a business.
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What is accounting - What is accounting? Accounting is an...

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