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Anyone working in an office at some point in time will definitely has something to deal with accounting department. Account people are those who pay and send out the bills that maintain the business. However, they don’t do only that. Being called as “bean counters”, they also take care of profits, costs and losses.

Accounting is basically information, which is published periodically in business as a profit and loss statement, or an income statement.

Without some form of accounting, you will have no idea of how profitable - or not - your business is no matter what kind of business you’re in. Balance a check book?  That is accounting. Accounting is even part of a kid’s life such as saving an allowance, spending it all at once. These are what we call accounting principles.

Accounting is critical for all businesses whether it’s a multi-billion dollar or a start-up one. Not doing so can mean anything from a bounced check or posting a loss to a company’s shareholders. Both scenarios can be equally devastating.

Well, do you know that farmers also need to strictly follow accounting procedures? Many of them take loans to plant the crops. That’s how they run their farms year over year.  They can pay off their loan in good years with profits. If not, they might have to carry the loan over, and bear more interest charges.

Accounting helps both business and individual control their finances. Without accounting, they don’t know what they’ve spent, or how much they earned or loss. It’s some kind of activity that everyone needs in their lives, at least once in a while.