A process that records, reports, analyze the financial transaction for any organization and individual known as Accounting and the occupation or profession of an accountant known as Accountancy. Accounting is a part of the commerce that determines the financial stability of the organization. Or in other words it measures, process, and communicate the financial information about economic entities. Accounting is also called “language of business” developed by the Italian mathematician Luca Pacioli in 1494. Accounting is one of the commerce subjects that conveys information to the number of users such as investors, creditors, regulators, and so on. The person who has
responsibility to handle all these is known as Accountant. Accountant handles of all such activities in the organization. He or she is determines the wealth, liquidity, and profitability.
Accounting is an important for any type of business as all other business related decision depends on the accounting decisions. For example,
designing budget, investment,or any other long-term decisions depends on accounting decisions. Due to the development of the information technology,
every organization is using automated accounting system. The accounting system performs all the activities of the activities of the business and
provides the details of each activity. It permits to analysis the business trends and highlights the future prospects.
Many sub fields of the accounting are exists. Financial accounting, tax accounting, auditing, management accounting are some sub-field of the
accounting. Financial accounting studies the financial information of the business. Management accounting analysis, measure, and report the management
information that helps the manager for the business-decision making process. Verification of the financial statement is done by the auditing. Different accounting organizations such
as accounting firms, standard-setters, professional bodies provides the accounting process.
For the students of the commerce, the CBSE board has define Accounting and Business studies subjects whereas the ICSE board has define the commerce subjects.