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Define Accounting!Previous lesson: Basic Accounting Concepts Next lesson: Basic Accounting Equation The first thing one should do, no matter what subject one is studying, is to define the subject itself. In other words... What's it about? What's the deal? What is this thing? Okay, so let's define accounting: Accounting is a system of recording information about a business.
The information that is collected is primarily numerical. This information is then presented to various people to help them make decisions.
The accounting system is used to maintain records for all businesses, whether a multinational corporation or a small business. To account for something means to keep a record of something in your business by using the accounting system. 
An accountant (or bookkeeper) collects documentation and records this information, categorizes it (i.e. organizes the different bits of information under certain categories), and presents it in specific formats. Accounting information is finally presented in the form of financial statements – the key reports of a business. Accountants can fulfill this role too, but more often these days are involved in preparing and presenting financial statements, and fulfilling an advisory or consulting role. Accountants have even become business strategists, intimately involved in guiding the operations of a business. Previous lesson: Basic Accounting Concepts Next lesson: Basic Accounting Equation Ask Us a Question About This LessonStill scratching your head after going through this lesson? No problem. Send us a question you have relating to this lesson or topic... Read Other Questions Relating to This Lesson
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