What finance and accounting are for: branches of accounting and keeping records

This week’s topics

What finance and accounting are for: branches of accounting and keeping records

1. Different branches of accounting
2. Recording financial transactions
3. Presenting financial information

What you will be able to do

• 1.1 Explain the purpose of finance and accounting.

Activity

Start with this week’s 3 videos, then discuss how they apply to this week’s topic and note one example from a real business.

Study materials

Videos

• Can taxes be avoided? · Oak National Academy, Key Stage 4 (GCSE level) · for registered students
• Basic record keeping for the self-employed · YouTube · HMRC · 2 min · for registered students
• What does HMRC do and why does It matter to you? · YouTube · HMRC · 5 min · for registered students

Further resources

• Principles of Accounting Vol. 1, ch. 1.1: The importance of accounting · PDF · OpenStax (2019), section 1.1 on the purpose of accounting and the two branches that serve decision-making and control; pp. 12–13 · for registered students
• Principles of Accounting Vol. 1, ch. 1.4: Why accounting matters to stakeholders · PDF · OpenStax (2019), section 1.4 on how owners, lenders and managers use accounts to plan, borrow and monitor performance; US examples; pp. 22–29 · for registered students
• Introduction to Business 2e, ch. 14.1: Accounting – more than numbers · PDF · OpenStax (2026), section 14.1, a short introduction to what accounting is for and who relies on it; pp. 473–476 · for registered students
• Financial Management Skills in Small Tourism Businesses: An Exploratory Study · Open-access article · Mattimoe (2013), Irish Accounting Review. Shows why small firms need records, budgets and financial information to plan and monitor performance. · for registered students