Before discussing anything on the importance of accounting & bookkeeping, let’s understand what does it mean exactly?
Book-Keeping: The easy way of understanding could be like “entry of all the financial transactions like purchases, sales, receipts, payments etc. It’s part of the process of accounting in business. This also contemplated as “an art as well as a science of recording all the financial transactions which are related to business.
Accounting: Accounting is treated as a language of the business. Accounting is the next level of activity which starts after a book-keeping process. It is the standardized and complete recording of all financial transactions related to a business. Further, it’s a process of summarizing, analyzing and reporting those transactions. So these reports can determine the financial position of the business.
Ok, coming back to the main debate, our experts being start-up accounting advisors at Look4Expert working round the clock to educate people to make them understand better on the importance of accounting and bookkeeping. It’s very simple to conclude that Accounting & Bookkeeping is essential for any business. To explain in simple words, if any entrepreneur running their business without looking at their financial transactions it’s same as running in the dark forest to reach their destiny.
As a business owner, you should know about your Income, Expense, and Profit/Loss. Here accounting and bookkeeping play a major role, bookkeeping will help you to maintain records of all the financial transactions where accounting takes care of summarizing and analyzing them. Now, you have facts and figures of your business. Think about next level business plan, define a goal. Haa, let’s take a break meanwhile think again whether you need to give importance for accounting and bookkeeping or not. If you decide to give importance, then don’t forget to come back because we’ll be discussing how these summarized and analysis reports can change your way of doing business.