WHY ACCOUNTING &
BOOKKEEPING IS IMPORTANT?
Accounting is the most important part of any successful business. It records all transaction of the business organization and enables owner to know his Assets & Liabilities and Profit or Loss made during the year. Owner gets his business information in numbers, not word.
Advantage of Accounting in business organization:
- Provide most vital information how your business is growing;
- Profitability of loss in any project/division of business;
- How cash flows generated in business are re- invested/ diverted from organization;
- Assist in understanding where the profits of a business are re-invested;
- Helps in planning the cash flow requirements for current and/or new projects or organization;
- Helps in short term and long term planning of business;
- In a more simplified description, accounting is the process of producing timely, accurate, and understandable financial information of business entity;
- Records requirements for audit compliance as per UAE laws.