So what is this business function called “accounting”?
In simple words, accounting is the collective process of systematically identifying, measuring, recording, summarizing, analyzing and interpreting a business’ financial transactions. While there have been many discussions about the difference between accounting and bookkeeping, we keep our definition here to the general overview about accounting.
It may look like a lot of work (yes it is, depending on the industry). But that is how important it is that business owners need accounting so they can:
- Track financial operations
- Monitor and comply with legal obligations
- Make better business decisions
So, whether you like it or not, accounting will always be a critical part of running a business. Either you master it yourself as a business owner, or outsource it, or both, accounting will always be important.