Accounting is the process in which an individual (or an accountant) systematically tracks an individual’s or company’s financial information.

The information is measured, evaluated and communicated in the form of financial reports. Those reports are used by individuals to aid in making strategic economic decisions for themselves or their business.

While simple to define, accounting can be a complicated process and should be taken seriously. Proper production and analyzation of financial reporting is an integral component to a profitable business.

The data that goes into your financial statements are calculated from your business metrics, such as total sales and monthly expenses.