Accounting is a System.
The process of Accounting has been developed and designed over time to collect data from the various transactions happening in a Business and thereafter, analyze, summarize, record and report this data to users in a predetermined format.
Since no Business exists in a vacuum, the stakeholders in and around the business rely on the reports prepared by Accountants to make decisions.
Some of the many users who use the Reports prepared by Accountants are -
Accounting has evolved over time into niche categories to serve the needs of MANY different types of users.
This branching out has lead to different types of Accounting being developed over time.
Some of the common forms of Accounting are
The focus of this website is Financial Accounting, though we will explore concepts of all the other types of Accounting when necessary.
Overall, Accounting is an incredibly useful subject to master.
You may have heard people say - "Accounting is the language of Business."
We believe that a firm knowledge of Accounts will not only help you understand the different dimensions of Business but will also help you become more analytical and a better decision maker in your personal life.
If you are new to accounting the next thing I would read about would be The Accounting Cycle.
If you want to learn accounting with a dash of humor and fun, check out our video course.