Lesson #1 - What Is Accounting?

Accounting or bookkeeping is an old ancient profession which involves the recording and measurement of financial information (mainly money related!) about a business or company.

The people who are qualified in the accounting profession are obviously called "Accountants".

Although accounting may sometimes be referred to it as the "Language Of Business", I'd like to refer to accountancy as "Counting Beans" and the accountant as "The Bean Counter".

"1001, 1002, 1003, 1005...D'oh! Looks like I have to start again!"

So, what's the BIG DEAL about accounting anyway? Why is it important?

Accounting provides owners and businesses a financial snapshot about the health and profitability of a business so that solid business decisions can be made.

Without accounting, owners and businesses would simply be doing business "blindly", without knowing if they are profitable and without future direction. That would be disastrous! In short, we could say that they would be "Dancing in the Dark".

Here's Bruce Springsteen...

Enjoy!!!