The Role of Accounting in an Organization
What Is Accounting? Accounting is a systematic process of identifying, recording, classifying, summarizing, interpreting, and communicating financial information about an organization's economic activities. It involves collecting, analyzing, and reporting financial data to support decision-making, financial planning, and control within an entity. The primary objective of accounting is to provide accurate and relevant financial information about the economic resources, obligations, and activities of a business or organization. This information helps stakeholders, including investors, creditors, management, and government agencies, to assess the financial health, performance, and prospects of the entity. Accounting follows specific principles, standards, and frameworks to ensure consistency, comparability, and reliability of financial information. The most widely used accounting framework is Generally Accepted Accounting Principles (GAAP), which provides guidelines for recording an...