Book keeping and accounting is very essential in the day to day activities of the business enterprise. Accounting is the chronological and systemic recordings of financial activities and analyzing the financial position of a business entity in order to ascertain the profit and loss, assets and liabilities of the business entity and the interpretation thereoff. Accounting help the business owner, the manager, investors and other stakeholders to evaluate the performance of an organization or enterprise. Accounting provides important information regarding cost, earning, profit and loss as well as liabilities and assets which will guide the decision making, planning and controlling within the business. Despite all the numerous usefulness of book keeping and accounting, some business owner doesn't take it serious. Does that mean accounting is not really needed in small businesses?
Accounting is needed in any form of business. But not just large businesses need to have an accounting and finance department which means irrespective of the companies size, all businesses and firms need an accounting department. How would one manage the business without this departments, how would one calculate the profit and loss of the business. If the business is growing or not our would one know
Chommyluv
Member
Accounting is very important and need at every kind of business. The size of business does not matter. A business without proper account will likely suffer a serious financial setback. It is the duty of an accountant to ensure that every financial aspect of the business is well managed to avoid any unexpected financial chaos. It is not for fun that every big business organization create a separate department for accounting, it is because of its peculiarity.
Alexandoy
VIP Contributor
Of course, you need to account your money in business. Accounting computes for the money coming in and for the money going out. The difference is the cash on hand. Together with that computation comes the profit for a certain period and that's the clearer way of knowing if your business is doing good or not.
Rachelgold
New member
Accounting is needed in small businesses even as it is also needed in large businesses because that is what will help you to evaluate whether you are making profits or losses
Kingsley
Valued Contributor
The relevance of accounting in any business whether small or big business can not be over emphasized because business has a lot to do with accounting, and accounting goes beyond bookkeeping, it has a lot to do with analysis and making financial projections and also making plans ahead of any situation that may affect the business.
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