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Account Accounting Concepts Account Types Accounts List Accounts Reports Balance Sheet BAS Report BAS Report List Cash Flow Forecast Cash Flow Statement Dashboard Journal Entry Journal Entry List Profit and Loss Retained Earnings Summary Sheet Transaction Journal Trial Balance

Overview

Accounting define as follows.

"The process of identifying, measuring and communicating economic information to permit 
informed judgements and decisions by users of the information".

The key words in the above definition:

• Accounting is about providing information to others. Accounting information is economic information - it relates to the financial or economic activities of the business or organization.

• Accounting information needs to be identified and measured. This is done by way of a "set of accounts", based on a system of accounting known as double-entry bookkeeping. The accounting system identifies and records "accounting transactions".

• The "measurement" of accounting information is not a straight-forward process. it involves making judgements about the value of assets owned by a business or liabilities owed by a business. it is also about accurately measuring how much Profit or loss has been made by a business in a particular period. The measurement of accounting information often requires subjective judgement to come to a conclusion.

• The definition identifies the need for accounting information to be communicated. The way in which this communication is achieved may vary. There are several forms of accounting communication (e.g. annual report and Accounts, management accounting reports) each of which serve a slightly different purpose. The communication need is about understanding who needs the accounting information, and what they need to know.

• In addition, Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. It also refers to the process of summarizing, analyzing and reporting transactions.

Financial Statements

It is a formal record of the financial activities of a business, person, or other entity. Accounting information is communicated using "financial statements". There are two main purposes of financial statements:

1. To report on the financial position of an entity (e.g. a business, an organization).
2. To show how the entity has performed (financially) over a particular period of time (an "accounting period").

The most common measurement of "performance" is profit. It is important to understand that financial statements can be historical, or relate to the future.

Accountability

Accounting is about Accountability

Most organizations are externally accountable in some way for their actions and activities. They will produce reports on their activities that will reflect their objectives and the people to whom they are accountable.

Using Accounts

From Main Screen - Select Accounts Tab