Information is the key to success – trust me with your accounting!
Accounting is the process of recording, classifying, summarizing, and interpreting financial transactions to provide financial information that is useful in making business decisions. The primary objective of accounting is to provide accurate and timely information to stakeholders, such as investors, creditors, and management, so they can make informed decisions about the financial health of a business.
There are different types of accounting, including financial accounting, management accounting, and cost accounting. Financial accounting involves preparing financial statements that provide information about a company’s financial performance and position to external stakeholders. Management accounting provides internal stakeholders with information to make informed business decisions. Cost accounting involves tracking and analyzing the costs associated with producing goods or services.
Accounting principles and standards are established by professional organizations, such as the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), to ensure that financial information is accurate, reliable, and comparable across organizations. These principles and standards are generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).