Accounting, Business

Business accounting refers to the financial management of a company, whether a small neighborhood grocery store or a huge multinational corporation. The focus of business accounting is on the economic comings and goings of the firm—each time money goes in or out, the business accountant must keep track of what has happened and why, to be able to predict what will happen in the future and prepare for it. Business accounting, thus, has three major functions: (1) identifying financial transactions by the company, (2) recording those transactions in a manner that makes it easy to keep them up-to-date, and (3) reporting the transactions to stakeholders in the business so that they can use the information to steer the business into the future.

Depending on the physical ...