1. Accounting and finance Introduction to accounting

2. What is accounting? accounting refers to the process of recording and using financial information collected by a business accounting is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information

3. Users of financial information Internal users owners – to assess the benefits of their investment managers – to record, plan, control, analyse and evaluate activities and performance employees – to look at the security of their employment and for pay rises

4. Users of financial information External users government – to ensure that legal requirements and tax obligations are met; to assess business activity and performance in order to put together economic information competitors – to measure performance against others and identify strengths and weaknesses

5. Users of financial information suppliers – to know the prospects of customers before agreeing to supply customers – after-sales support and warrantees will only be provided if a business stays in existence local community – often relies on businesses for wealth creation investors – to check and compare the value of their investments

6. Financial records legally, all businesses must keep financial records the key external documents produced are; balance sheet profit and loss account cash flow statement (only legally required in the case of a PLC)

7. Financial records to produce these, businesses will keep detailed internal financial records from this information, other useful documents can be produced like cash flow forecasts and budgets as well as the other essential figures required to run a business day-by-day