The process of recording, organizing, and interpreting financial transactions and information of a business or organization.
Accounting is an essential aspect of financial management that enables organizations to record, analyze, and interpret financial information. It plays a crucial role in providing insights into a company's financial health, facilitating decision-making processes, and ensuring compliance with regulatory standards.
Accounting can be defined as the systematic process of recording, summarizing, and analyzing financial transactions of an individual, business, or organization. It provides a clear picture of a company's financial position, performance, and cash flows. By maintaining accurate and up-to-date financial records, accounting enables businesses to assess their profitability, manage resources efficiently, and make informed strategic decisions. It also plays a critical role in ensuring transparency, enabling stakeholders to evaluate the financial health of an organization.