Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information that helps individuals and organizations make informed business decisions. It involves the collection, analysis, and interpretation of financial data to support various stakeholders in making financial decisions.

The main objective of accounting is to provide accurate and reliable financial information about an organization’s financial activities, such as its revenues, expenses, assets, liabilities, and equity. This information is then used for various purposes, such as financial reporting, tax compliance, management decision-making, and investment analysis.

Accounting also involves the preparation and analysis of financial statements, such as the balance sheet, income statement, and statement of cash flows, which provide a snapshot of an organization’s financial position, performance, and cash flow.

Overall, accounting plays a critical role in the functioning of businesses, governments, and other organizations by providing the financial information necessary to make sound decisions and allocate resources effectively.