What is Accounting? And Why do I need to learn it?
“Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information.” A Statement of Basic Accounting Theory (Evanston, Ill,: American Accounting Association, 1996),p.1.
Throughout your career as a manager you will need to be able to identify, record, communicate, analyze and interpret financial activity. Many mangers learn cost control and how to read an income statement but accounting is much more than this. Understanding accounting and being able to apply terms and concepts in your career will give you a clear understanding of the financial health of a business and a competitive advantage.
In order to understand accounting methods, you must first need to understand the accounting principles. If you wonder why an accounting transaction is recorded in a particular way at a particular time these principles will help in understanding as well as keeping to the principles of accounting.
It can be confusing with so many principles and resources out there, here are two resources comparable to what we teach in Hospitality Accounting.
Explanation of Accounting Principles
