All of us do some accounting, often without realizing it. It is a part of our life. When we recall the use of money. In business, however, it is a more serious matter. You cannot run a business unless you know how much you owe outsiders and how much outsiders owe you. And when you invest money in a business, you would like to know whether you’ve recovered it, increased it or lost it. All this requires systematic record keeping of all that happens on a day-to-day basis in business and analyzing this information to aid business decision making.
There exist three main types of accounting: General Accounting, cost & management accounting and company accounting.
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet
