Accounting involves collecting, processing, analyzing, and reporting financial information. It provides useful data to both internal and external stakeholders of a business. There are two main types of accounting - financial accounting which reports information externally, and managerial accounting which provides information internally for decision making. Key financial statements include the balance sheet, income statement, and statement of cash flows. Accounting also establishes guidelines for tracking and organizing financial data through the use of accounts, journals, ledgers, debits and credits.