There are many languages in the world, with the help of which people communicate with each other, similarly accounting is the language of the business. It help's us to communicate with the business and analyze its performance.
Why is it important?
Just think about it for a moment, if there was no accounting, how would you record companies transaction? How would you know how the business has been performing?. The answer is YOU CAN'T. Without accounting you cannot measure the performance of the business. Accounting helps managers make informed decision by studying the accounts of the company.
Lets look at another example
Lets suppose you own a business and your doing very well, GREAT!!!, but just hold it there for a moment, how will you analyze the performance of your business? how will you know that how much have you sold up to this date or how much net profit have you earned? You cannot know about any of this until and unless you 'ACCOUNT' for it.
Who Uses Accounting?
Everyone uses accounting, whether they are managing a business, investing money or just deciding how to spend their saving or paychecks.
Therefore overall accounting is really important to everyone. It helps you to account for things.
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