WHAT IS ACCOUNTING ?

         

   WHAT IS ACCOUNTING ?

               When we start any business, we expect some "PROFIT" from it, A businessman is always interested in earning more and profit. He keeps the record of each and every business activity, dealing in the books of accounts. These daily activities, dealings, events in the business is called as 'Day to Day Business transactions' in professional language.
          This process of day to day recording of business transactions is called "ACCOUNTING". 
          So accounting can be termed as. 'Recording the day to day business transactions.

WHY ACCOUNTING IS NECESSARY FOR EVERY BUSINESS ?
         We can get the following advantages of 'Accounting' .
1.Accounting gives us information about Profit or Loss of the            business for a particular period. Generally profit or Loss is        calculated for the month or for the year for a day or for a week.
2.Accounting informs us about overall financial position of the            business such as :-
   a) The amount payable to other parties.
   b) The amount due from other parties for business.
   c) Information about capital of the business.
   d) Information about assets of the business.
3.Accounting informs us not only the amount of profit or loss but        also the reasons behind it.
   Thus Accounting is helpful for the business.So every businessman always keeps the systematic records of day to day business transactions.