Advance Finance Diploma Service

Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non-financial information about economic entities such as businesses and corporations.^[1][2] Accounting, which has been called the "language of business",^[3] measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators.^[4] Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.^[5]

Accounting can be divided into several fields including financial accounting, management accounting, tax accounting and cost accounting.^[6][7] Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to the external users of the information, such as investors, regulators and suppliers.^[8] Management accounting focuses on the measurement, analysis and reporting of information for internal use by management.^[1][8] The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.^[9] Accounting information systems are designed to support accounting functions and related activities.