Ye olde Marriam-Webster Dictionary defines accounting as “the system of recording and summarizing business and financial transaction, and analyzing, verifying, and reporting the results.”
So what does that even mean? It means how a business or person (like an accountant, how about that) keeps track of all the financial details related to the company.
Typically communicated in the form of financial reports, these are helpful for decision-makers to make budgetary decisions, with the ability to analyze budget vs. goals, expenses vs. revenue, and unused resources.
Now you may think, “oh, simple!” and in part, you would be correct that defining accounting is a relatively simple process, but on the other hand, you are WRONG, and we suggest finding well-versed accountants to manage your funds because remember, it isn’t the c-suite you want to keep in good graces, it’s the financial department.