What Is Accounting?
Accounting or accountancy is the process, measurement, and communication of financial and other non-financial data about organizations including corporations and businesses. With an accurate accounting system, a company can easily track and monitor its financial performance, understand its financial situation, plan its future, manage its resources, and maximize its value. In simple terms, accounting provides information on the financial performance of a firm or business entity. Accounting has been around since ancient times, when the first accountants published their accounting journals qualified CPA in Charlotte NC. Nowadays accounting has undergone several changes and improvements through the years.
What Do Accountants Do?
The major part of the accounting process includes the maintenance and updating of records, reports, vouchers, ledgers, journals, and other things that are relevant to the organization’s activities and finances. The preparation of the income statement, balance sheet, and statement of cash flows form the basic content of accounting. These three documents are used by accountants to understand the financial transactions of the firm.
A qualified accountant should be proficient in all the three fields of accountancy, i.e., public accounting, corporate accounting, and internal auditing. While preparing reports of daily transactions, expenses, revenues, costs, and other related financial statistics, accounting professionals use several software programs to make their job easier. Some examples of accounting software used by accountants are excel, journals, bookkeeping, Peachtree, Quicken, and QuickBooks. The use of computers for accounting helps reduce the time needed for data entry, eliminate errors, improve data quality, and speed up processing. Computers also help accounting professionals to save time, money, and energy that would otherwise be spent on travel, letters, and other forms of correspondence.