Whether you’re the proud owner of a new startup or entering your 10th year working your way up the ladder, you may be wondering, “what is business accounting?” A simple business accounting definition goes as follows:
Business accounting is the process of gathering and analyzing financial information on business activity, recording transactions, and producing financial statements.
Business accounting is important for a variety of reasons. Keeping tabs on all of your assets, liabilities, inventory, and other records can help you secure investors, protect your assets from theft, and find ways to grow your company and take it to the next level. Primary duties of small business accounting include bookkeeping, preparing and filing tax returns, and drafting financial reports.
- Through business accounting, you can better manage your finances to make informed financial decisions for your company. Many small business owners take on accounting themselves in the early stages to save money. If you’re in the same boat, it’s essential you have a firm grasp on business accounting basics.