Accounting is the systematic process of recording, analyzing, summarizing, and reporting financial transactions of a business or individual. It provides a clear picture of an entity’s financial health, ensuring transparency, compliance, and informed decision-making.

🧾 Key Functions of Accounting:

1. Recording Transactions

   • Bookkeeping of day-to-day financial activities.

2. Classifying & Summarizing Data

   • Organizing entries into categories and producing statements.

3. Financial Reporting

   • Preparing financial statements (e.g., balance sheet, income statement).

4. Budgeting & Forecasting

   • Planning for future financial performance.

5. Auditing & Compliance

   • Ensuring financial practices adhere to regulations and standards.

6. Tax Preparation

   • Calculating and filing income, corporate, or GST taxes.

7. Cost & Management Accounting

   • Internal financial analysis to aid strategic decisions.