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Accounting is basically following a set of rules and regulations, which allows a company to analyze and interpret the financial performance of their business, and look at statistics such as net profit, gross profit ratio etc. Accounting can be defined as the systematic recording, reporting, and analysis of financial transactions of a business. The person who manages all this is known as an accountant. It provides various other important information about the company and its net worth, like the resources available to a Company, the means employed to finance those resources, the results achieved through their use, the assets and liabilities of the company and Proprietors stake. In other words, It reveals profit or loss for a given period.

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