Accounting involves mainly bookkeeping, and auditing but much more. Basically it records transactions in such a way as to verify the use of economic resources within a business or organization. In order to Practice accounting, one becomes familiarized with that body of knowledge dealing with (1) methods for recording transactions, (2) keeping financial records, (3) performing internal audits, (4) reporting and analyzing financial information to the management, and (5) advising on taxation matters. Accounting is a systematicprocess that identifies, records, measures, classifies, verifyies, summarizes, interprets and communicates financial information. Reporting will reveal a profit or loss for a given period, and the value and disclose information about a firm's assets, liabilities and owners' equity. Accounting provides information on the (1) resources available to a firm, (2) the means employed to finance those resources, and (3) the results achieved as a result of their use.
Accounting information is used and distributed both inside and outside the organization depending on the user and needs. For better assurance that the information is reliable, accountants should exhibit the following competencies: