What is accounting?

Accounting is a part of finance that analyzes the different items that show the financial movements of a company. This resource is of great help to know the situation in which a business is, and with this they can set a series of strategies with the aim of increasing the performance of their economy.

The definition of accounting also refers to the tool for managing expenses and ingresos of an entity. In the development of its normal activity, the equity of any company will vary due to the sale and purchase operations, where the result can be positive (gains) or negative (losses).

Regardless of the size of the business, the concept of accounting affects both large companies and SMEs, since the basic objective is to guarantee the adequate profitability of the entity, in addition to having the capacity to bear tax burdens.

Accounting objectives

The accounting objective is to record the different financial and economic operations of the company in the accounting documents, in addition to interpreting the accounts to make decisions and in this way satisfy the different groups involved, such as public administrations, shareholders or creditors.


  • Study and report on financial resources Of a company.
  • Provide managers with enough information to organize good planning and decision-making.
  • Have a record of the management of administrators and tax burdens.
  • Know the money flows that the entity will handle.
  • Participate in surveys on the economic activities of the business sector.

A broader definition of accounting may be the technique that arises with the objective of meeting the organizational needs of the economy. It is a disciplinary tool that uses precise statistical methods to calculate scores. Collect any figure or data of interest, since any detail, however minimal, can modify an expected result.

Accounting in the company

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