Tuesday, 30 March 2010

What is Accounting?

Accounting is the language of business. It explains the affairs of a business in financial terms. For example, it will tell you that the business sold goods for a value of so many thousands or millions or billions. The accounts can tell you much more about the business:

  • What was the cost of the goods sold?
  • What profit did the business earn?
  • How much money has the business borrowed?
  • How much money has owners of the business brought into the business?
  • What categories of assets do the business own?
  • How much money is owed to the business by customers and others?
In addition to owners of the business, others like lenders, tax authorities, investors and researchers will be interested in these kinds of information about a business.

In this blog, you can learn about accounting from fundamentals to advanced topics. Below is a broad list of topics we hope to cover:

  • What is book keeping? And what is the double entry system?
  • Books of accounts, from hard bound day books and ledgers to modern day computer generated reports
  • Creating meaning out of the mass of details in the books of accounts
  • Accounting concepts, what and why
  • Using accounts for managing your business - financing, costing, decision support
  • Financial management
  • Cost control
  • Management information
  • Funding a business
Our goal is to explain each topic in sufficient detail, in clearly understandable terms. Ideally, a novice with no accounting knowledge should be able to gain sufficient understanding to read accounting reports and gain business insights.

No comments:

Post a Comment