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ACCOUNTING
for some people, accounting science is related to the calculation system, but the fact is that
accounting is a process that is not simple. What is accounting? What is the definition and
understanding of accounting according to some experts?

This knowledge is quite widely used in daily applications, especially related to business
activities. By using this knowledge, entrepreneurs can monitor whether the business they are
running is running well or not. Well, by reading this article, you will have a better
understanding of the following topics and be able to answer questions such as: an information
system that provides reports to interested parties regarding the economic activities and
condition of the company. What is the definition of this sentence? Accounting is the process of
identifying, measuring and reporting economic information to enable clear and unambiguous
judgments and decisions for those who use the information.
Broadly speaking, the notion of accounting is a process that begins with recording, classifying,
processing, presenting data, and recording transactions related to finance. Thus, the
information can be used by someone who is an expert in the field and becomes material for
making a decision. A practitioner who is an expert in this field is called an accountant. The
definition of accounting has also been referred to as the language of business to measure the
results of economic activities in organizations and convey information to various parties,
including management, investors, creditors, and regulators. Various theories themselves have
been put forward regarding the notion of accounting. Various theories develop along with the
increasing number of people who want to learn it, considering the science of accounting systems
provides various conveniences in carrying out activities. Although accounting software is very
helpful, but as an entrepreneur, accounting knowledge is very important to understand.
The definition of accounting according to experts is as follows:
Various definitions and understanding of accounting represent different things. This difference occurs because the experts who
put forward explore different fields of science. Here are some definitions of accounting according to some experts:
Warren et al (2005:10) What is accounting? In general, accounting or accounting is an information system that produces reports to
interested parties regarding the economic activities and conditions of the company.
Suparwoto L (1990: 2) Stating that accounting is a system or technique for measuring and managing financial transactions and
providing the results of such management in the form of information to internal and external parties of the company. These
external parties consist of investors, government creditors, labor unions and others.
Soemarsono S.R (2004) Accounting or accounting is a process of identifying, measuring and reporting economic information to
enable clear and firm judgments and decisions for those who use the information.
S. Munawir (2005) Accounting is an art of recording, classifying and summarizing events and events and at least part of their
financial nature in a expeditious and direct manner or expressed in money, and interpreting the matters arising therefrom.
The Process in Accounting Is As Follows
As already mentioned above that accounting is a process related to finances of anything that happens in a business or organization. The
process consists of recording, summarizing, analyzing, and reporting data. If you want to know more, here is an explanation of the
four processes:
WRITING
The first and most important process in the accounting process is the recording of transactions that occur within the company. This
process is often referred to as bookkeeping, namely recognizing transactions and entering them into records. Bookkeeping is
concerned with recording only. In accounting, bookkeeping is usually done for the sake of detailed recording and becomes a report
to present data as a final financial report.

Summarizing
Generally, raw data is the result of recording transactions and is considered not very important. This raw data has no effect on the
decision-making process. However, this is where the role of the accountant is to use the raw data, divide it into categories, and
translate it. So, the usual process is to record transactions, then summarize them.
REPORT
Every business that happens in the company is the responsibility of management. Every business owner should know the various
operations or activities that take place in the company and how the company uses the money. In this case, the owner of the
company will receive a financial report for the company which is usually sent monthly. Meanwhile, there is also an annual report
that will summarize all the performance within the company.
ANALYZE
Finally, analyzing is an important final process in accounting. After recording and summarizing, of course you have to draw
conclusions. This is where the important role of management to examine the positive and negative points. In analyzing all of this,
accounting introduces the concept of comparison. Where you can compare sales, profit and loss, equity, and more to determine
and analyze work and make decisions. Of the many understandings of accounting science, all of them have almost the same goal
where each goal is to provide accurate reports relating to company financial problems. Accounting will assist you in presenting
detailed reports on the company's expenses and income so that you can find out the profits and losses. In addition, the use of
accounting knowledge will also help companies to identify employees who commit fraud. Can you now answer the question what
is accounting? Again, accounting is the process of recording and processing data on every transaction that occurs in a business.