An Introduction to Accounting

An Introduction to Accounting

Accounting is a System

A process .

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 -

  • Investors
  • Governments
  • Business Owners
  • Managers
  • Lenders
  • Suppliers

The Different Types of Accounting

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

  • Financial Accounting
  • Management Accounting 
  • Governmental Accounting
  • Tax Accounting
  • Forensic Accounting
  • Project Accounting 
  • Social Accounting

The focus of this website is Financial Accounting, though we will explore concepts of all the other types of Accounting when necessary.

Final Thoughts

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.

Conclusion

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.

Disclaimer

The content provided on accountingsuperpowers.com and accompanying courses is intended for educational and informational purposes only to help business owners understand general accounting issues. The content is not intended as advice for a specific accounting situation or as a substitute for professional advice from a licensed CPA. Accounting practices, tax laws, and regulations vary from jurisdiction to jurisdiction, so speak with a local accounting professional regarding your business. Reliance on any information provided on this site or courses is solely at your own risk.

Tax and accounting rules and information change regularly. Therefore, the information available via this website and courses should not be considered current, complete or exhaustive, nor should you rely on such information for a particular course of conduct for an accounting or tax scenario. While the concepts discussed herein are intended to help business owners understand general accounting concepts, always speak with a CPA regarding your particular financial situation. The answer to certain tax and accounting issues is often highly dependent on the fact situation presented and your overall financial status.