Financial accounting is crucial for any business organization. It offers a picture of a company’s financial position concerning its liabilities, assets and other obligations. It becomes hard for many to understand and come to terms with it. This article therefore seeks to urge the mystique of financial accounting. We will define Financial Accounting Meaning, Principles, Importance and Why It Matters. Thus, irrespective of the status of the individual being a business person, student or working person, knowledge of financial accounting plays a vital role in arriving at better decisions. It is now time to review its primary facets in an unprejudiced and uncomplicated manner. Financial Accounting Meaning Financial accounting is the process of identifying and reporting the results of an organisation’s economic activities. It has the effect of enhancing the accuracy of prepared accounts. These are the balance sheet, the income statement, and the cash flow statement. They envisage general