The following are the key highlights from this article:
- Accounting is a term that describes the process of consolidating financial information to make it clear and understandable for all stakeholders and shareholders.
- The main goal of accounting is to accurately record and report an organization’s financial performance.
- Accounting can be classified into two categories – financial accounting and managerial accounting.
The following are some of the main reasons why accounting is important to business:
- Keeps a record of business transactions
- Facilitates decision-making for management
- Communicates results
- Meets legal requirements
