A Brief Definition of Accounting

A Brief Definition of Accounting

 

There are lots of Definition of Accounting. So I collect some best Definition of Accounting. So i shared with you. In below:

Accounting is the process of systematically recording, measuring, and communicating information about financial transactions. Accountancy made its beginning since the ancient period of time. But when, where and how the process of accounting practices exactly started is hot very much clear.

The theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc. Accounting is famously known as the "language of business". Through the financial statements, the end-product reports in accounting, it delivers information to different users.

The accounting system is used to maintain records for all businesses, whether a multinational corporation or a small business. The system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results; also : the principles and procedures of this system. 

Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizable finance departments with dozens of employees at large companies. 

There are two general kinds of accounting. Financial accounting is the recording and communication of economic information in accordance with Generally Accepted Accounting Principles (GAAP) and is primarily for external users. Managerial accounting is the recording and communication of economic information that may or may not be in accordance with GAAP and is for internal users. Other accounting specialty areas exist, such as tax accounting, oil and gas accounting, or forensic accounting. 

The Double Entry System is a recognized and generally accepted system all over the world and till date this system is being used widely with its basic principles unchanged. On the basis of these basic principles the accountants of modem age have established a scientific accounting system.

Accounting is considered an art because it requires the use of skills and creative judgment. One has to be trained in this discipline to be able to perform accounting functions well.
Accounting is also considered a science because it is a body of knowledge. However, accounting is not an exact science since the rules and principles are constantly changing.

Accountants can fulfill this role too, but more often these days are involved in preparing and presenting financial statements, and fulfilling an advisory or consulting role. Accountants have even become business strategists, intimately involved in guiding the operations of a business.

So accounting is really very important.