Book keeping and General Accounting (including Real-Time Accounting):
- Ascertain the profit or loss resulting from business operations.
- Measure the financial position of a business by appropriately valuing its assets, capital, and liabilities.
- Identify the exact amount of debtors and creditors for a specific period.
- Manage capital structure and assets to analyze the economic soundness of the business — including short-term liquidity and long-term solvency.
- Determine tax liabilities such as Sales Tax, VAT, and Income Tax by ascertaining total sales and net income.
- Establish efficient financial administration to prevent resource leakage, misuse, or misappropriation by maintaining accurate transaction records.
- Facilitate smooth auditing of books of accounts.
- Serve as legal evidence in courts when necessary, as audited financial statements are authentic and legally recognized documents.
Cost Accounting:
- Fixation of Prices
- Guides in Reducing Costs
- Identifies Profitable and Unprofitable Activities
- Provides Information for Proper Planning
- Helps in Measuring and Improving Operational Efficiency
- Controls Overuse or Misuse of Materials
- Supports Decision-Making: Machine vs. Labour
- Aids in Expansion Planning
- Helps Detect Reasons for Losses
- Assists in Strategic and Operational Decision-Making
- Acts as a Check on the Accuracy of Financial Accounts
Budgeting:
- Gives you control over your finances
- Keeps you focused on financial goals
- Makes you aware of your financial status
- Helps organize spending and saving patterns
- Assists in planning how your money works for you
- Enables saving for expected and unexpected expenses
- Facilitates communication with family/partners about money
- Provides early warning signals for potential issues
- Helps determine the feasibility and extent of taking debt
- Enables strategies to generate extra income
Store Accounting:
- Ensures effective use of available store space
- Prevents overstocking or understocking of materials
- Enables efficient receiving, handling, and issuing of materials
- Protects stored goods against fire, theft, loss, and obsolescence
- Ensures timely and authorized supply of materials through proper requisitioning