Accounting is the processor keeping the accounting books of the financial transactions of the company. The accountants summarize the transactions in the form of journal ingresses. These ingresses are utilized in bookkeeping. The books of accounts are yare by the accountants as per the regulation of the auditors and sundry regulating bodies. The accountants might follow the Generally Accepted Accounting Principles (GAAP) or the IFRS (International Financial Reporting Standards) principles

If an analyst reads the book of accounts, he/she can get a fair conception of the financial situation of the company. Thus, for public listed companies, the book of accounts is indispensable to determine the company valuation.

How does accounting work? Accounting is one of the most paramount things a business does. A bookkeeper or accountant might do it in a minute business or by dozens of people in an astronomically immense organization's finance department. The reports made by variants of accounting, like cost accounting, financial accounting and managerial accounting.