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Accounting

Definition of Accounting
Understanding of the principles of bookkeeping and accounting is essential for anyone interested in accounting, even essential for anyone who wants to succeed in business.

Bookkeeping and accounting purposes is to provide information regarding the financial affairs of a company or
business. This information is vital to know the business. owners themselves, managers, creditors, and government agencies.

A person who made ​​a living by recording the financial activities of a business or business employee, known as bookkeeping (bookkeeper), while the process of classifying and summarizing business transactions and interpreting the effects of the transactions carried out by an accountant.

So in brief we can say that 'Accounting (bookkeeping) related technical tasks such as recording transactions, and functions of an accountant is to interpret data generated by use of the bookkeeping process.

Accounting can be defined based on two important aspects, namely:
1) The emphasis on the aspects of function that is on the use of information accounting. Based on the aspects of the accounting function is defined as a discipline science that provides information necessary to conduct a efficient measures and evaluates the activities of the organization. Such information is essential for effective planning, monitoring and decision making by management and provides organizational accountability to investors, creditors, government and others.

2) The emphasis on this aspect of the activities of persons conducting the process accounting. In this aspect of people who carry out the accounting processes should:
Identify the relevant data in decision making.
Process or analyze the relevant data.
Change the data into information that can be used to
decision-making.
 
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