Accounting
Accounting is the process of recording, summarizing, analyzing, and interpreting financial transactions to provide a clear picture of a business's financial health. It's the language of business, essential for decision-making, financial planning, and reporting.
Core Accounting Concepts:
- Assets: Resources owned by a business, such as cash, inventory, and equipment.
- Liabilities: Debts owed by a business, such as loans and accounts payable.
- Equity: The owner's investment in the business.
- Revenue: Income generated from business activities.
- Expenses: Costs incurred in generating revenue.
Fundamental Accounting Equations:
-
Accounting Equation:
- Assets = Liabilities + Equity
-
Income Statement Equation:
- Revenue - Expenses = Net Income
Key Financial Statements:
- Income Statement: Shows a company's revenues, expenses, and net income over a specific period.
- Balance Sheet: Provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, 1 and equity.
- Cash Flow Statement: Reveals the inflows and outflows of cash during a specific period.
Types of Accounting:
- Financial Accounting: Focuses on preparing financial statements for external users like investors, creditors, and regulatory agencies.
- Management Accounting: Provides financial information to internal users, such as managers, to make informed decisions.
- Cost Accounting: Analyzes the costs associated with producing goods or services.
- Tax Accounting: Deals with tax planning, compliance, and reporting.
- Forensic Accounting: Investigates financial crimes, fraud, and other irregularities.
Why is Accounting Important?
- Decision Making: Provides financial data to support informed decisions.
- Financial Planning: Helps in budgeting, forecasting, and financial planning.
- Investor Relations: Communicates financial performance to investors.
- Regulatory Compliance: Ensures adherence to tax laws and other regulations.
- Risk Management: Identifies potential financial risks and develops mitigation strategies.
General frequently asked questions
You can create account with Gurufilings or you can book any service with us to become a member.
You can track and know every details of your services by logedin into your account or our support team will let you know by Phone or Email.
Gurufilings provides both online and offline Payments for our clients.
Based on terms and conditions you can cancel your service at any time.