What
are accounts or accounting?
Accounts
or accounting in simple words is nothing but the process of recording,
reporting summarizing and analyzing the financial transactions of any
organization. Therefore however small or large a company maybe, accounts play a
very vital role in controlling the overall performance of the company. If the
accounts of any company is not managed properly then the company can run into
huge losses and hence it is very important to be extremely systematic when it
comes to taking care of complete financial activities of an organization.
Bookkeeping
is the common way of recording all the transactions of business. These
bookkeepers or accountants record, produce and analyze the financial reports.
They generally record assets, liabilities, income, expenses and equity, bonds
that are recorded with debit and credit entries.
Accounting
thus is an important academic subject that not only is vital for smooth running
of a business organization but also is important in our day to day lives. It
helps for long term planning by properly managing the funds we have in hand
today, weather it is for business or personal needs.
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