Accounting and Business

Accounting is something relating to the business when strictly talking in a professional sense. Recording of the business transactions, summarizing the recorded data and subsequently reporting it in the form of financial statements covering a stipulated accounting period. Analyzing the reported data to evaluate the business performance also forms part of the accounting process. 

Initially, accounts of an organization were maintained manually and there was no concept of accounting software. The transactions were recorded manually after organizing the data in chronological order involving various types of vouchers with the respective nature of the transaction e.g cash vouchers, bank vouchers, and journal vouchers commonly known as Voucher System. It is a method of cash/bank disbursement by authorizing and approving the payment to the payee and mentioning the account head/title to be charged on it. All the business transactions were controlled and managed to ensure whether all such transactions have been properly checked and approved by the approving authority.    

The rapid development of technology has made a tremendous impact on the prevailing business sector and the data management systems. Most of the performing business organizations switched their business activities to computerized data management and started working in a more efficient manner. This introduced accounting software transforming all the manually operating accounting systems to electronic data processing management.