Accountancy

Accountancy or accounting is the job of sharing financial information about business to

managers and shareholders(people who have invested in the business. Accounting is often 

called the "language of business". Accountants are people who do accounting, and also carry

out the auditing or checking of a company's books and records. In Britain, this auditing is often 

carried out by a qualified person called a "chartered accountant".

When accountants do accounting work, they write in the books of account (ledgers) that belong 

to a company. Every time money is spent or earned, it is written in the ledger. The information in

 the ledger is used to prepare the company accounts monthly, quarterly (every three months) and 

annually (every year). These annual accounts show what money the company has taken in over 

time and what it has spent money on. It also shows if the company made a profit in the year (if it 

made more money than it spent), who owes the company money, who the company owes money 

to, and any big expensive items the company has bought which they expect to use for many

 years. Lenders, managers, investors, tax authorities (the people who collect taxes for the 

government) and other decision-makers look at these annual accounts. Managers and investors 

look at the ledger and make decisions about how to spend money in the future. Lenders like 

banks look at the accounts before they lend money to the company. Tax authorities look at them 

to check that the company is paying the correct amount of taxes.

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