In this post, I want to talk briefly about accounting, the language of business. Every business person should have basic notions of accounting as it gives you a good insight into how businesses operate. Accounting is the process of measuring and summarizing business activities, interpreting financial information and communicating the results to management and other decision makers. It is an information system that provides reports to users about the economic activities and condition of a business.
Accounting information is used by two different users, internal users (managers and employees) and external users (investors, creditors, customers, government). All accountants identify quantitative information (business transactions), record it in a systematic manner and report that information using financial statements. The information they provide must be trustworthy and useful for decision-making.Continue reading Introduction to Accounting