What is Accounting?

Accounting or Auditing is the measurement, interpretation, processing and communication of information about financial and non-financial entities including corporations and businesses. The primary objective of an accounting firm is to process and report information that inform managers and owners of the status and performance of their company or organization. Good accounting practices are essential for a company to maximize its resources and minimize risks. In order to enhance management’s ability to make informed decisions regarding their business, a good tax accountant – gvcpass provides periodic reports to the owners/management and auditors of the company.

why need to accounting?

A company’s accounting system usually includes bookkeeping, receiving, recording, tracking, quoting, recordkeeping, reconciliation, reporting, and tax preparation services. All of these services require systematic recording, storing, comparing, and interpreting data about financial transactions, activities, and events. Accounting records are used to generate financial statements about those transactions, as well as to evaluate the financial performance of the business.

Generally, accounting is divided into two different categories: Internal and External accounting. Internal accounting is concerned with policies and procedures of the business that are not in connection with the day-to-day operations. External accounting is concerned with activities of management that result in or contribute to the material reporting of the business, including the preparation and submission of the company’s financial statements. A good accountant not only meets the specific requirements of managerial accounting, but should also understand and meet the needs of the owners and the financial auditors.

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