'Accounting: What and Why?' by Md. Tarek

Accounting is a field that is essential not only for businesses but also for our personal lives. To know where money is being spent, how much income is being earned, or whether savings are increasing or decreasing, understanding accounting is crucial. Since ancient times, humans have kept records of their agricultural activities; etching marks on stones, tying knots in ropes, or making marks on tree bark.

As civilizations progressed, trade and commerce flourished, especially in Venice, Italy. Business transactions generally involve two parties exchanging goods or services—one party receives a benefit while the other provides it. From this concept of exchange, the Italian mathematician and friar Luca Pacioli discussed the method of double-entry bookkeeping in 1494 in his famous work Summa de arithmetica, geometria, proportioni et proportionalita. This marked the beginning of modern accounting. Today, the scope of accounting has expanded in ways that are almost unimaginable.

What is Accounting?
In simple terms, accounting is the process of accurately recording and analyzing income, expenses, and financial activities. It helps us understand the financial condition of an individual, family, or organization.

Why Should We Learn Accounting?
Every day, we spend money to buy various products and services. By keeping track of even these small expenses, we can save effectively. For businesses and organizations, accounting is vital for understanding profits and losses, managing debts, and planning for the future. Accounting helps in making informed decisions, ensuring transparency in business, paying taxes correctly, and aiding long-term planning.

Knowing accounting allows you to manage personal finances wisely, reduce unnecessary expenses, and increase savings and investments. Even if you are not running a business, accounting is essential because you make financial decisions every day. Understanding accounting ensures that your money is used efficiently.

Is Accounting Just About Mathematics?
No. While it involves some calculations, the essence of accounting lies in organizing and analyzing financial information. Any student can learn it with ease.

Opportunities from Learning Accounting
Knowledge of accounting opens doors to careers in accounting, finance, banking, business management, and even personal financial planning. Accounting is more than a subject—it is a unique tool to manage life efficiently. Learning it can help anyone lead a more organized, disciplined, and successful life.