Advantages of Accounting

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 1) Innumerable monetary transactions occur in a business organisation. Accounting keeps a systematic record of such transactions.       

2) When a business maintains a complete record of its transactions, it has complete information about expenses, losses, incomes and gains, Hence, It can easily ascertain the net profit or net loss for any period. 

3) Accounting records will help a concern to know not only it's net profit or net loss but also the exact reasons that has contributed to the profit or loss.

4) when Accounting records are available over a period of time. It can compare the results of its business from year to year and study the progress of business over a period of time.

5) When a business house 🏡 keeps Accounting   records, it has a complete record of what it owns, what it owes and what it has invested. So it can know the true and correct financial position of its business at anytime.

6) Accounting records enable a business concern to keep effective control over it activities. For this reasons Accounting records are called"the eyes and 👂 ears of a business".

7) Accounting records enable a business concern to keep detect the frauds that have taken place in the business. It can take effective steps to stop it's reoccurrence.

8) Accounting records and reports help the management in planning, controlling and decision making functions.

9) Claims against a business by its creditors and claims by the business against its debtors can be established and proved in courts of law by producing Accounting records as evidence.

10) Accounting records will enable the business concern to know this tax liability and settlement of claim from different departments of Government.

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