Accounting is the process of recording financial transactions pertaining to a business or to our daily life. The accounting process includes summarising, analysing, and reporting these transactions to oversight agencies, regulators, and tax collection entities.
Understanding how to properly budget, save, invest and prepare for tax season is essential to understanding how accounting functions within our daily, monthly and yearly in our daily life as well as business.
The most critical financial report for any business is known as the profit and loss statement, P&L statement or income statement. This basic report shows how much money your business made, how much money is available and where the money is coming from.