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Accounting – Definition
Accounting is the systematic process of recording, classifying, summarizing, analyzing, and interpreting financial transactions of a business or organization.
In simple words,
👉 Accounting is the language of business that shows where money comes from, where it goes, and what remains.

Key Functions of Accounting
• Recording financial transactions
• Classifying transactions into accounts
• Summarizing data in financial statements
• Analyzing financial performance
• Interpreting results for decision-making

Objectives of Accounting
• To keep a systematic record of business transactions
• To determine profit or loss
• To know the financial position of the business
• To provide information to owners, managers, and government
• To help in decision-making and planning

Importance of Accounting
• Helps in business planning and control
• Assists management in decision-making
• Provides information to investors and creditors
• Helps in tax calculation
• Prevents fraud and errors

Conclusion
Accounting provides essential financial information that helps businesses operate efficiently, remain profitable, and comply with legal requirements. Without accounting, effective business management is impossible.