Accounting is the process of recording, measuring and summarizing financial transactions. It provides a comprehensive picture of an organization’s performance with detailed information about its assets, liabilities, equity and expenses. Step by step, accounting helps businesses manage their finances effectively and accurately. First, collect relevant financial data – this could include accounts receivable, accounts payable, inventory, payroll and sales records. Secondly, record these entries in designated journals. Thirdly, classify information into appropriate categories. Lastly, prepare reports such as the Profit & Loss Statement and Balance Sheet to present the company’s financial position. Accounting is a dynamic process that allows businesses to make informed decisions towards achieving long-term financial success.