What is accounting

 Accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results and also the principles and procedures of this system. All accounting or book keeping has a standard set of accounting principles. It stand for every type of business. In this way there is unity in all business accounting procedures to ensure that there is unity and a clear understanding no matter what business is being monitored. There are many types of accounting in a business. Every facet of the business has its own special type of accounting. accounting for the day to day transactions and all are important to the survival of a business. and yet in accounting area was including like Credit, Payroll, Taxes, Assets, Receivables, Payable, and Public.

When the day to day transactions are recorded this is called basic book keeping. Those transactions are recorded as debits, credits and must always balance in what is called the accounting equation. This is the way an overall look at a company can be made to determine the success of the company.

The use of computers is making these transactions easier to post and work for the company. Reports of any kind can be produced with the push of a button and a quick of the transactions and cash flow are revealed. All kinds of reports are needed to measure the company like Statement of Profit and Loss, Balance Sheets, Assets and Liabilities Report, and Retained Equity. All of these reports give a picture of what the company is doing and where it is headed. They can help to decide if the company is financially stable and if there are any adjustments to be made in the strategies for operation. These reports are good for the investors also. They are able to see if a company is worth investing in.