Accounting is primarily a system of analysis and reporting of economic transactions/events, which is based on the accounting equation. It is the backbone of every business process. Accounting helps to arrive at the financial position of the organization at any point of time. The process of analyzing, classifying, summarizing, reporting, interpreting and communicating all the financial transactions or business transactions is known as Accounts. To record that data in a particular time period is known as Accounting. It includes Different Accounting Concepts, Principles, and Golden Rules. So that one can easily understand what is accounting Entries and how to enter it in the Accounting software and get the Finalized results according to the time periods.
The organization’s financial status, as on a specific time period, is captured in the balance sheet, while financial performance for the year is summarized in a profit and loss statement. In accounting numbers of Principles, concepts and conversations are used to ensure that accounting information is presented accurately and consistently. Accounting is the language of every business. It interprets the financial health and communicates the financial report of a business to all the parties directly or indirectly associated with the business. The parties who are interested in business functioning for their decision-making internal parties like employees, Board of directors, managers, business owners, investors (within the organization/directly involve with the business) as well as external parties (outside the organization and indirectly involved with the business) like competitors, suppliers, customers, creditors, clients, business intermediaries, society, government, etc.
In earlier times, the accounting process was done on a manual process with the help of accountants but these days, there is a number of software which ensures business firms in managing their financial transactions in a much easier and quicker way. Accounting help to generate for financial statements for shorter periods, such as a year, a month and a quarter so that performance can be measured and compared. Accounting is a economical support system that records transactions, classifies transactions and events, express transactions in monetary term. It also helps to monitor the financial performance and condition of the business, help to evaluate the business and establish control for the business. Accounting serves as an effective tool that measure the financial up & down of the company. It is a continuous cycle of measurement of results and reporting of results to decision makers.
- We provide all the basic knowledge about accounting. So that a Non-commerce student can also understands about it.
- We gave knowledge about all the terms that is useful for them to know about what is accounting?
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- We provide them theoretical notes.