What is Bookkeeping and Accounting ?Bookkeeping and Accounting
ACCOUNTING:- Accounting is the process of recording, classifying, summarizing, and interpreting financial transactions of a business or organization. Its primary purpose is to provide relevant and reliable financial information to stakeholders, enabling them to make informed decisions about the entity's financial activities. Key aspects of accounting include: 1. Recording Transactions: Accountants systematically record all financial transactions, such as sales, purchases, expenses, and payments, in a structured manner. This is typically done using accounting software or manual ledgers. 2. Classification and Categorization: Transactions are categorized based on their nature (e.g., revenue, expenses, assets, liabilities) to ensure accurate financial reporting and analysis. 3. Preparation of Financial Statements: Accountants prepare financial statements, including the income statement, balance sheet, and cash flow statement. These statements provide a snapshot of the company's...