In accounting terminology, the term Accounting refers to the practice of recording and analyzing the financial transactions of a business.Accounting also generally involves reporting this information.
For example, Accounting for a business involves standard methods for recording financial transactions, keeping accurate financial records, giving an accurate analysis of the company’s finances to the company’s management and being able to perform internal audits. The Accounting department of a company can provide additional information about the company’s available resources, how those resources can be financed and the results of how those resources are employed. Accounting sums up the pluses and minuses in running a business and allows management to make decisions based on how the numbers are interpreted. This can be extremely beneficial in cutting costs and optimizing production for businesses.