• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 2. Accounting 101 > Understanding the Importance of Accounting

Understanding the Importance of Accounting

Accounting is the business of keeping track of all the financial activities of an entity (individual or company). When you use accounting techniques, you provide an opportunity to obtain information about how your company is performing, and you can use that information to make intelligent decisions.

Without accounting, you never know whether your business is profitable or losing money until you either find yourself with too many bills and not enough money to pay them, or find your cash register overflowing with no room to store all the cash. Chances are greater that you will be met with the former scenario if you haven’t kept track of your company’s performance through basic accounting methods.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint