In simple words process of reporting business transactions in the form of financial reports is called accounting.
In a more detailed perspective accounting is a systematic process of identifying and determining, recording and disclosing, estimating and measuring, classifying and allocating, summarizing and presenting, interpreting and communicating financial information ultimately in the form of financial reports.
Accounting process can divided into three main sub-processes:
- identifying the business transaction
- recording and summarizing the financial information
- communicating, interpreting and finally making decisions on the basis of financial information