Why is accounting needed?

Why is accounting needed?

Accounting is required -

1. To know the profit or loss - In any business or organization, there is a constant flow of money. That means money comes in and money is spent in running that business or organization. It is only because of accounting that we come to know how much profit and loss is being incurred in running that business or organization.

2. To pay tax - If we are running any business or organization, it is not limited to just profit and loss but we also have to pay tax to the government. For that we need accounting so that correct accounts can be maintained and correct data and proof can be shown.

3. To plan for the future - To run and advance any business or organization, it is very important to know where the expenditure is more and where the income and profit is more. All this can be understood only with the help of accounting and a good plan can be made to advance that business or organization in the future.

4.To avoid fraud and mistakes - If you are doing any work like running a shop, doing any big business or running any small or big organization. If you keep daily accounts then small or big mistakes are caught quickly. Due to this no employee or partner can commit fraud.

5. To give reports to investors and banks - Often to run a business, there is a need to take a loan and take money from investors. For this, they have to show the financial report of that business which can be easily done through accounting.

If said in simple and straight words then accounting is the mirror of any business in which its financial position is clearly visible.

Click for Hindi

Related topics -

What is accounting?

Types of accounting

Comments

वो मुझे ही ढूढ़ रही थी

सुनें 👇 यह मेरे कॉलेज के दिनों की एक घटना है जिसमे एक दिन मुझे कॉलेज से घर जाते समय एक लड़की दिखी। जानी पहचानी लगी। फिर याद आया की एक समय स्कूल के दिनों में वो मेरी ही क्लास में थी। तब वह काफी मोटी हुआ करती थी लेकिन अब काफी फिट है और खूबसूरत भी। इसके आगे जो कुछ भी हुआ उससे मुझे ये सबक मिला की भावनाओं में बहकर किसी के भी सामने और कहीं भी किसी के भी बारे में कुछ भी नहीं बोल देना चाहिए चाहे वो सच ही क्यों ना हो क्योंकि लोग हर बात को गहराई से समझने के बजाय ज्यादातर गलत मतलब ही निकालते हैं। हमेशा की तरह उस दिन भी मैं कॉलेज से निकला घर जाने की लिए अपने स्कूल के दिनों को याद करते हुए। वैसे तो मैं डायरेक्ट बस ना मिलने पर दूसरे स्टॉप तक पैदल ही जाता था। लेकिन उस दिन मैं ऑटो से जा रहा था। उस दिन आसमान में बदल छाये हुए थे और बारिस होने की भी संभावना थी। उस ऑटो में बैठे हुए अभी कुछ ही दूर पहुंचा होऊंगा की ऑटो वाले ने एक लड़की के सामने ऑटो रोक दिया जो की एक सिग्नल से थोड़ी दूर सड़क के किनारे खड़ी थी। शायद वो लड़की उसकी पहचान की रही होगी। वह ऑटोवाला उसे ऑटो में बैठने के लिए बोल रहा था लेकिन वो...

My first WhatsApp group

Due to not changing according to the changing times in life, due to the confusion and running of today's life, sometimes something happens to us that we are ashamed to remember it and there is a lot of laughter too. A similar incident has happened to me too, remembering which I feel ashamed and also laugh. This incident is from 2017 when I used to work in an office. I have used the same words and styles which we use in our daily routine, due to which some styles of speaking words of Hindi have been used in English translation so that I can make you feel as much as I was feeling. group of two people It was almost half an hour since my office shift started that afternoon I was discussing something with my new group leader Sagar. Then my old group leader Harish came towards me. And told me- "Rakesh I forbade you to request leave on WhatsApp group. If it is very urgent then message me personally on WhatsApp". Harish who was my old group leader and now may have been shifted t...

Saras views

Search This Blog