What is Accounting?

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.

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