Financial Accountancy

Financial accountancy involves recording, summarizing, and reporting a company's financial transactions through standardized financial statements. It provides an accurate picture of an organization’s financial health—including assets, liabilities, income, and expenses—allowing stakeholders like investors, lenders, and regulators to make informed decisions. The process relies on established principles and practices to ensure consistency, comparability, and transparency across different businesses and periods. Overall, financial accountancy serves as a formal communication tool that reflects the company’s financial performance and position at specific points in time.