When you are the owner of a business or even in your personal life there may be a need for accounting. Accounting is something that is used in everyday working environment. The use of accounting is for keeping track of what comes in and out every month, and payroll for a business. In our personal lives we may us accounting to keep track of our bills and balancing our check books. No matter what it is that has to be done there is always a reason to use accounting.

Accounting is being able to identify the financial position of an organization. Making sure that you can identify the financial activities of the business is not being used as the owner’s personal use (Godwin, 2010, p3). If the owner has a shoe store make sure that you are able to identify purchases for the store from personal shoe purchases. Being able to communicate the information that has been reviewed back to the owner in terms of where he stands at this point in time for the business compared to the month before. Being able to inform them of what the status is of everything going on pertaining to the business and what needs to be changed to make it better.
The accounting process starts by being able to identify everything that started at the beginning of the process all the way to the end making sure that all transactions are being recorded. It’s all about being able to identify the transaction so that you are able to analyze what’s going on with each individual transaction. Be sure to show if the transaction was a credit or debit. This will show as to where each transaction needs to be applied to one side either the liabilities or the equity. Make sure that all the information that is received is also recorded that way there are no transactions that go unlisted. Make sure that the process is started by using the equation assets= liabilities + equity; so if there are any changes being made to any part make sure that you change all of the information or it will be incorrect (Godwin, 2010, p46). Once you have gotten to this point you want to place all the information into a ledger which will show the step by step process as to how you got to that conclusion. Once you have completed these steps you are now ready to present a statement to show how well or what needs to be change to make the business better.
In order for you to make the best out of a business you want to make sure that you are able to keep your personal business away from the companies. There are many times that people allow their personal live to get in the way of business and this causes problems. If you allow your personal expenses to interfere with business then your money will never balance out and you will always be in the negative. No matter what it is that you are doing make sure that you keep the two accounts separated that way you know that there is nothing being mixed with business. If you find that your business is not doing well make adjustments to that you can find ways to increase that revenue.
Technology has made it very easy for the small business they can be fully operated as a big business can. A small business owner only needs to take the same steps as a large business. Small businesses are able to take their information and find a accountant that will work out all of their information for them to make their business a success. There are many web based sites that can be used to help them with their accounting needs. A small business is able to put the information out for the public to see what they have to offer and they are able to build their business from where it is now to become one of the larger companies that we see every day.

Godwin, A. (2010). Financial accounting. Mason, OH, USA: South-Western Cengage Learning.
RYAN, C., GUTHRIE, J., & DAY, R. (2007). Politics of Financial Reporting and the Consequences for the Public Sector. Abacus, 43(4), 474-487. doi:10.1111/j.1467-6281.2007.00243.x. Retrieved August 29, 2010 from Business Source Premier

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