Accountancy is the practice of recording, classifying, and reporting on business transactions for a business. It provides feedback to management regarding the financial performance and status of an organization. It covers the rules, regulations, procedures, principles, concepts, conventions, and techniques which are to be applied in the process of accounting. The process of recording and summarizing financial transactions is known as ‘bookkeeping’. The key accountancy tasks are recordation, classification and reporting. The recording of business transactions usually involves several key transactions that are handled on a repetitive basis. The results of the efforts of the preceding accountants are accumulated into a set of accounting records of which the summary document is the general ledger. The reporting aspects of accountancy are considerable, and so have been divided into smaller areas of specialization, which are financial accounting and management accounting.

Prachi Garg

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