Accounting Basics

The need for accounting has always been the same: to provide an accurate snapshot of a business for a certain point in time, so management and others can make informed decisions.



There are different types of accounting:
What is Accounting

What is Cost Accounting
The basics include such things as:
Basic Principles
Accrual Accounting

Accounting Formulas

Accounting Terms

Accounting Internal Control
Accounting History

Accounting is used by:
Management of a company to control revenue and expenses and improve efficiencies.

Investors, creditors, and customers of a business to determine if the business is in sound financial shape.

Government taxing authorities.

Accounting is very important to the world of business. Without it, the country and the world would not have much to rely on to determine if a business is in good financial shape.

Can you imagine a bank making a loan to a business without knowing what their revenue and expenses are? Would you invest thousands of dollars in company stock if you didn't understand their financial position?

While there have been scandals such as Enron that have involved misleading accounting, the system we have is continually improving and evolving.