The term accounting is very common, especially during tax season.
But before we dive into the importance of accounting in business, let’s cover the basics – what is accounting?Accounting refers to the systematic and detailed recording of financial transactions of a business.
There are many types, from accounting for small businesses, government, forensic, and management accounting, to accounting for corporations.
Why Is Accounting Important?
Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.