Accounting practices refer to the methods and procedures used by businesses and organizations to record, classify, and summarize financial transactions. These practices ensure that financial information is accurate, consistent, and compliant with relevant laws and regulations. Common practices include bookkeeping, financial reporting, and auditing. Effective accounting practices help stakeholders, such as managers and investors, make informed decisions based on reliable financial data. They also facilitate the preparation of essential documents like balance sheets and income statements, which provide insights into a company's financial health and performance over time.