Why We Need books, accounts.
accounting is the compilation of financial information got use in maing economic decision bookeeping provides the basic ccounting data, by sytematically regarding sich day to day financial information as revenue from the sale of products or services, expenses of business operations such as the cost of merchandise sold and overhead expenses such as rent, wages, accounting principles determine which bookeepers ledges, journals and computer printouts.
The interpritation of these records is primary function of accounting the various financail statements produced by accountants, bookeepers than furnish business and other types of organisations. With the basis for their financial planning and control and provide other interested parties ie investors and the government with information they can use to make decisions about these organisations. Bookeeping provides informational access to a firms financial condition fir three broad interest groups. It gives the firms management the information to evaluate financial performance over a previous period of time and to make decisions regarding future of business. It informs the public the holders or partners. Them interested in buying stock and the financial status of the firms over the previous year or quarter.
Bookeeping is referred to keeping the books, proper bookeeping can help business effectively manage cash flow stay abreast of profits and losses and devlop plans for the future based on financial trends.
Bookeeping involves making a record of the money received by abusiness as well as the money paid out. It emcompasses money a company owes to vendors, employees and tax agencies contracters and other individuals. Accurate records of amounts owed to a company by outside individuals and ...