Accounting and Accountability

Accounting is the process of recording, organizing, and analyzing financial information about a business or individual to create clear records of income, expenses, assets, and liabilities. Accountability refers to the responsibility of individuals or organizations to accurately report and justify their financial activities, ensuring transparency and trust. Together, they help stakeholders—like managers, investors, or regulators—assess financial health, comply with laws, and make informed decisions. Effective accounting provides the data, while accountability ensures those data are honest and appropriately handled.