Account
Definition
An account is a record that groups similar business transactions together. Each account tracks one kind of thing — such as cash, equipment, or rent expense — so the business can see how much of it exists or how much activity happened in a period.
Example
Northstar Creative has an account called Checking. Every deposit and payment from the checking account is recorded there. At month-end, the balance shows how much cash the business has in that bank account.
Why It Matters
Accounts are the buckets that organize financial information. Without accounts, a business would have a long list of transactions but no way to see the totals that matter.