Accounting

Accounting, which is sometimes known as accountancy, is the measurement, processing, and transmission of financial and non-financial information concerning economic organisations such as firms and corporations. Accounting is also often referred to as the profession of accountancy. Accounting, sometimes known as the "language of business," is the process of measuring the outcomes of an organization's economic operations and communicating those findings to various stakeholders, such as investors, creditors, managers, and regulators. Accountants are the professionals that work in the field of accounting. The phrases "financial reporting" and "accounting" are often interchanged with one another.

The discipline of accounting may be broken down into a several subfields, the most common of which are financial accounting, management accounting, tax accounting, and cost accounting. The preparation of financial statements and the reporting of an organization's financial information to external users of that information, such as investors, regulators, and suppliers, are the primary focuses of financial accounting. Financial accounting also focuses on the preparation of financial statements. Measurement, analysis, and reporting of information for the purpose of providing management with insight are the primary foci of management accounting. Bookkeeping refers to the process of documenting financial transactions so that summaries of those transactions may be provided in financial reports. Double-entry accounting is the most prevalent method of bookkeeping and is the most frequent kind of bookkeeping. Accounting functions and the actions that are connected to them are supported by the information systems used in accounting.

Throughout the course of human history, accounting has existed in a variety of guises and at varying degrees of complexity. Luca Pacioli, an Italian mathematician who was also a Franciscan friar, is generally credited with developing the double-entry accounting system that is still in use today. This method was established in mediaeval Europe, most specifically in Venice. Accounting companies, standard-setting organisations, and professional bodies are examples of the types of accounting organisations that exist in today's world to make the practise of accounting easier. Accounting companies often perform audits on financial statements, which are then compiled in line with generally accepted accounting standards and then reviewed by the auditing firms (GAAP). The Generally Accepted Accounting Principles (GAAP) are determined by a variety of organisations that are responsible for the establishment of standards, such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom. As of the year 2012, "all major economies" have strategies in place to either embrace the International Financial Reporting Standards or move towards them (IFRS).