What is Accounting

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What is Accounting

• By Leigh Barker

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Accounting is the process of preparing,
recording, summarising and analysing the
financial position and operating results.
Accounting is also a profession comprising
individuals who have obtained a formal education
to perform accounting tasks.
Accounting is the process of..
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Accounting is an essential process and the means
of determining financial stability and it is the
accountant who determines the overall wealth,
profitability, and liquidity of a business.
Accounting is an essential process
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Accounting has numerous sub-categories such as
management accounting, financial accounting, tax
accounting and auditing.
Accounting has numerous sub-categories
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Measuring, analysing and reporting information to
business managers to assist with decision making
within an organisation to achieve its goals.
Accounting includes such activities as
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The provision of financial information about an
entity that is useful to external parties who
make decisions about providing resources to that
entity
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The preparation, analysis and submission of tax
returns in accordance with relevant tax law
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Undertaking an unbiased examination and
evaluation of an entity to provide a reasonable
assurance that the financial statements of an
entity are presented fairly in all material
aspects
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General compliance with the statutory requirement
of various regulatory bodies
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While there are many layers or aspects of
accounting they are all conducted in accordance
with a standard set of accounting principles
called GAAP or General Accepted Accounting
Principles which all businesses follow.This
consistency in the application of business
accounting procedures will ensure that there is
consistency in understanding the accounts
regardless of the business.
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Thus accounting is the basis upon which daily and
long-term decisions are be made.Please note
All content of this blog is general in nature and
anyone intending to apply the information to
practical circumstances should seek professional
advice to independently verify their
interpretation and the informations
applicability to their particular circumstance.
Issued by Leigh Barker West Pennant Hills Gordon.
Liability limited by a scheme approved under
Professional Standards Legislation.