By now, accounting is the process of assembling, recording, classification, summarizing, analyzing, interpretation & communication of financial information to the internal & external users for decision making on an accounting entity.
Why is accounting important? It is essential for business owners to look for information and financial reports to help with the decision-making process. Accounting plays a critical role in running a business rather than personal life. Because it plays a vital role, including tracking income and expenses, accounting also ensures statutory compliance and provides sufficient financial information that investors, management, and the government can use in business decision making.