Financial Accounting

Everyone has a language for communication, conveying a message or understanding each other. The language through which a business speaks is called accounting. It is through which one understands a business.

A business’s health is measured by financial accounting. Financial accounts presents the past performance of the business. Using past performance one can take calculated measures to make future strategies.

Financial accounts are used not only by investors who have invested their money in the business but also other interested parties such as competitors, employees, customers, governments to collect income tax form the business etc.

Like a language is generated using letters and signs, financial accounts are generated using double entry book keeping. These double entry book keeping should follow certain rules called generally accepted accounting principles (GAAP).

That is why these accounts must be prepared by professionals who are qualified in these principles.

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