Economic Accounting

Economic accounting is the systematic process of recording, measuring, and analyzing a company's financial transactions and activities. It provides a clear picture of an organization’s financial health by capturing all income, expenses, assets, and liabilities. This information helps stakeholders make informed decisions about resource allocation, investment, and strategy. Unlike other accounting types that may focus on compliance or taxation, economic accounting emphasizes understanding economic value and performance for internal management and strategic planning. It ensures transparency, accuracy, and consistency in representing an organization’s financial position over time.