Double Entry Method & Accounting Equation: Businesses exist to make profits. How do you know if a business is making profit? By accounting for all the income and expense in the business operations. Without accounting, there is no proof of profit or loss and the entrepreneur will not know if they are achieving the primary … Continue reading Double Entry Accounting Method
Accounting: Accounting is a process of recording, summarizing, interpreting and communicating financial information in the form of financial statements and management reports. It is a broad term which encompasses many activities. Making accounting estimates, establishing methods of recording financial data, producing financial reports, analysis of financial reports and communication of financial results are all examples … Continue reading Accounting vs Book-Keeping.
Accounting is an off-shoot of counting. It dates back to ancient civilizations. With the passage of time, introduction of currency and expansion in trade, accounting developed as a stand-alone profession. Timeline of Book-Keeping and Accountancy from ancient times to 19th Century is presented below: Circa 4000 B.C. The income of temples is recorded in lower Mesopotamia. … Continue reading History of Book-Keeping and Accountancy – Timeline.
After being given the task of financial reporting of the small entity that I had recently joined, i gathered relevant data, processed it and produced a basic P&L and Balance sheet. Content with my achievement (No financial reports had been prepared prior to this), I presented the set of reports to my manager, who was … Continue reading Accountancy and Startups.!