A Beginner’s Guide to Accounting Basics

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Boring. I know.

Accounting is the process of reporting, analyzing, and communicating financial information about an individual or an entity (organization). In the simplest terms, it refers to how a business records its financial information.

Accounting Activities:

• recording financial transactions
• collecting financial data
• compiling records, reports, statements
• preparing and filing tax returns

Why Should We Need to Know Accounting?

Not only finance and accounting professionals need to be familiar with accounting’s role in business (and for entrepreneurs) but accounting also is a critical business skill for all professionals.