What is Accounting?

What is Accounting?

By definition, Accounting is the process of recording financial transactions pertaining to a business and analyzing, verifying and Reporting.

Why Accounting is Needed?

Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provides Investors,  Management and Government with qualitative information which can be used in business decisions.   

There are thee key financial statements generated by your records:

1. Income statement: which provides you the information about profit and loss for a specific period
2. Balance Sheet: which states the financial position of Business on a particular date
3. Cash flow Statement: which reports the cash generated and spent during a specific period   

It even helps to prepare Budget and future Projections