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WHAT IS ACCOUNTING? Accounting is a process that deals with the recording of financial transactions in a business. It includes numerous processes, which includes summarizing of finances, its analysis, reporting that are further forwarded to the regulatory authorities and tax collection entities.
TYPES OF ACCOUNTING • Financial Accounting • Managerial Accounting • Cost Accounting • Auditing • Tax Accounting • Accounting Information Systems • Fiduciary Accounting • Forensic Accounting
FUNCTIONS OF ACCOUNTING HISTORICAL FUNCTIONS MANAGERIAL FUNCTIONS • Recording of financial transactions. • Classifying. • Summarizing. • Finding net results. • Exhibiting financial affairs. • Analyzing financial data. • Communicating financial information. • Preparation of budget. • Control of financial policy and formation of planning. • Evaluation of employees’ performance. • Cost control. • Prevention of errors and frauds.
ADVANTAGES OF ACCOUNTING • Preparation of financial statements • Maintenance of business records • Decision making • Comparison of results • Provides information to related parties • Evidence in legal matters • Valuation of business • Helps in taxation matters • Replacement of memory
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