TOPIC : Introduction to Accountancy By Parth Mojidra | Powered by AccoFintra © AccoFinTra. All Rights Reserved © AccoFinTra. All Rights Reserved What is Accountancy? Accountancy is the process of systematically identifying, recording, classifying, summarizing, interpreting, and communicating financial events and transactions of an individual or organization. It is foundational for personal finance, entrepreneurship, business management, and decision-making at every level. Simply put, accountancy is the science and art of keeping financial records, which helps users know where they stand financially at any point. Today, platforms like AccoFintra are redefining how these principles are taught and practiced, offering fast, accessible, and reliable digital tools to make accounting seamless for users of all backgrounds. © AccoFinTra. All Rights Reserved Historical Evolution Accounting has been a part of human trade and civilization for thousands of years. Ancient merchants used clay tablets to track goods, debts, and exchanges. In 1494, Luca Pacioli formalized the double-entry bookkeeping system—a method that remains the backbone of modern accounting. Every transaction is recorded in two places (debit and credit), maintaining balance in financial records and giving rise to what we now call the accounting equation: Assets=Liabilities+Owner’s Equity © AccoFinTra. All Rights Reserved Scope of Accountancy; Accountancy covers: Financial Accounting: Creating financial statements for external stakeholder review. Management Accounting: Designing systems and analyses for internal decisions. Cost Accounting: Calculating and controlling the cost of goods and services. Tax Accounting: Compliance and optimization for tax purposes. Auditing: Verification of accounts for accuracy and transparency. © AccoFinTra. All Rights Reserved Objectives of Accountancy: The primary objectives of accounting are: 1. Systematic Record Keeping: Record all transactions accurately for future reference. 2. Determining Profit or Loss: Find out whether your business earns or spends more in a given period. 3. Assessing Financial Position: See the value of assets owned and liabilities owed at any time, visible via the balance sheet. 4. Communicating Information: Share summarized data with stakeholders for decision-making. © AccoFinTra. All Rights Reserved Accountancy Principles; Business Entity Concept: AccoFintra lets you clearly separate your business records from personal finances, ensuring your reports reflect your venture’s performance alone. Money Measurement Concept : With AccoFintra’s tools, only monetary values are recorded—every item (inventory, property, expenses) is tracked based on real numbers. Accrual and Matching Principles : Income and expenses are recorded when earned or incurred, not just when cash changes hands. AccoFintra reminders help users capture pending bills and future earnings. © AccoFinTra. All Rights Reserved Bookkeeping vs Accounting vs Accountancy Bookkeeping : Routine recording of transactions. On AccoFintra, this means entering receipts, invoices, and payments. Accounting : The process of summarizing, analyzing, and reporting results— AccoFintra converts raw data into statements, ratios, and graphs. Accountancy : The field setting rules, standards, and best practices. AccoFintra is built on these principles, guiding users step-by-step through every financial process. © AccoFinTra. All Rights Reserved Advantages of Accounting with AccoFintra Speed and Accuracy: Automated posting and real-time balancing save precious time and eliminate mistakes. Clarity: Reports for profit, assets, liabilities, and cash flow make strategic decision- making straightforward. Compliance: Built-in templates for GST, VAT, and tax reports reduce regulatory errors. Accessibility: Mobile and desktop platforms enable tracking anytime, anywhere. Security: Data encryption and cloud backups protect users’ financial data. © AccoFinTra. All Rights Reserved Conclusion Accountancy offers universal value —helping entrepreneurs, employees, families, and companies take control of finances and build trust with partners. Digital platforms like AccoFintra have revolutionized how people learn, track, and grow their financial lives. By mastering its principles and leveraging user-friendly technology, users can unlock greater transparency, reliability, and insight for every financial decision. © AccoFinTra. All Rights Reserved Thank-You