What Is Accounting?

Accounting is the language of business! It helps people keep track of money, resources, and financial health. Whether you're running a lemonade stand or a huge company, accounting gives you the tools to record, report, and analyze your financial activities.

Key Functions

• Recording Transactions: Keeping track of every sale, purchase, or expense.
• Classifying Data: Grouping transactions into categories like revenue, expenses, assets, and liabilities.
• Summarizing Information: Creating reports (like the income statement) that show how a business is doing.
• Interpreting Results: Analyzing the numbers to make smart decisions.

Why It Matters

Accounting helps everyone—from students to CEOs—understand where money comes from and where it goes. It’s essential for making budgets, paying taxes, and deciding if a business can grow.

Who Uses Accounting?

• Small business owners tracking profits
• Large corporations reporting to investors
• Individuals managing their personal finances