The Role of Accounting in an Organization
What is Accounting? Figure 1: Process of Accounting. Image Sourced from tallysolutions.com "Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows." (Fernando, 2022) In simple terms, Accounting is the process of gathering, analyzing, and disseminating financial and other data on companies and businesses. History of Accounting Figure 2: Evolution of Accounting. Nearly as long as money has existed, there has been accounting. Ancient Mesopotamian, Egyptian, and Babylonian cultures have a long history of accounting. For instance, the Roman Empire's administration kept meticulous financial records. Ho...