Accounting is the language of business. It’s how a business “keeps score”. It is defined as the art of recording, classifying, and summarizing financial transactions and events. It deals with interpreting and communicating information about business operations and finances.
Accounting is extremely important to any business because the financial information allows business owners to make informed business decisions. Whether managing a business, investing money, or just deciding how to spend and budget finances, everyone works with and uses accounting ideas.
In order to know how to keep track of their “money” in the business and how it operates, business owners need to understand what accounting is, how accounting works, what debits and credits are, what journals and ledgers are, what a balance sheet is, what an income statement tells, and what an accounting data reveals.
Do you want to know just how well you are doing in operating your business? Do you want to make better business decisions? Then learn to “keep score” by learning and understanding the basics of Accounting.