Accounting provides a valuable service.
It includes the processes of identifying, measuring, recording, classifying, summarizing, reporting and interpreting the financial transactions of an economic entity. The entity could be a business, a non-profit organization or a governmental unit. Accounting is often described as the language of business. The accountant's report reflects where a business has been and what its current status is. Creditors, managers, investors and others must consider this information when making decisions about the entity.