What is business accounting?
Business accounting (definition)
Business accounting is the systematic recording, analysing, interpreting and presenting of financial information. Accounting may be done by one person in a small business, or by different teams in large organisations.
Accounting is the way a business keeps track of its operations. Accountants analyse the business finances so the owner can make better decisions. This information is organized into reports that show the financial health of a business.
Accounting helps business owners meet their compliance obligations. It also helps them make smart decisions with their money.
See related terms
Handy resources
Margin calculator
Calculate your gross profit margin with this simple calculator to check you’re hitting your targets.
Margin calculator
Calculate your gross profit margin with this simple calculator to check you’re hitting your targets.
Accounting software
Keep on top of your numbers effortlessly, with the Xero’s online accounting platform
Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.