What is Accounting?

American Accounting Association defines accounting as "the process of identifying, measuring and communicating".

Accounting Standards Council defines accounting as "a service activity".

Accounting vs. Bookkeeping

Accounting is considered by some as synonymous with bookkeeping but those two are totally different. Bookkeeping is concerned with systematic recording of transactions. While, accounting is the bigger picture. Accounting is concerned with preparing and interpreting financial reports. Accounting provides information for the management that will be useful for decision making.