What is Accounting?

Accounting is the process of recording, analyzing, interpreting and reporting financial purchases of a business or organization. It tracks the financial data (assets, liabilities, income and expenses) to help stakeholders make knowledgeable decisions, be certain of regulatory compliance and evaluate financial health.

• Financial purchases
• Financial data
• Financial health

How does Accounting work?

Accounting works by tracking revenue, expenses, assets, liabilities and equity. Tracking these can help when making things like a income statement, statement of financial postion and a trial balance. This lets the company know if they are making a profit or not.

1. Income statement
2. Trial balance
3. Statement of financial postion