Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves identifying, measuring, and communicating financial information about a business to stakeholders such as shareholders, managers, suppliers, banks, tax authorities, and others. The primary purpose of accounting is to provide financial information that is useful in making decisions about the allocation of resources. This includes preparing financial statements such as the balance sheet, income statement, and cash flow statement, which provide information about a business’s financial performance, position, and cash flows. Accounting also involves ensuring that financial transactions are recorded in accordance with generally accepted accounting principles (GAAP) and local financial reporting standards.