What is accounting?

[rajivkumar]

I’m new to finance and want a simple explanation of what is accounting and how it helps businesses track income, expenses, and compliance.

 

[Jonas_Kahnwald]

Accounting‍‌‍‍‌‍‌‍‍‌ is the procedure of documenting, categorizing, summarizing, and analyzing the financial transactions of a business with the objective to know and present the financial position, performance, and cash flow of the business for issuing of legal reports, planning, and ‍‌‍‍‌‍‌‍‍‌decision-making.

 

[Shane John]

Accounting refers to a process of documenting, analyzing and reporting financial transactions. It assists individuals and companies to know about money, budgeting and adherence to regulations.

 

[Oscar]

It is defined as accounting wherein the transactions are recorded, classified, and summarized in order to keep track of a firm's income, expenses, assets, and liabilities. It basically helps individuals and businesses make decisions regarding finance.

 

[Benjamin]

Accounting is the methodical procedure of documenting, classifying, categorizing, as well as summarizing and analyzing the financial dealings of a company or a person. It assists in monitoring income, expenses, assets, and liabilities, ensuring accuracy, supporting decision-making, and requirements of legal, tax, and financial reporting.