Objectives of Book keeping (Comeerce Achiever)
Objectives of Bookkeeping-
The main objectives of bookkeeping are:
1. To Identify And Summarize The Transactions
Bookkeeping helps to identify the transactions of financial nature and summarize them systematically in a chronological order.
2. Recording Of Financial Transactions
Bookkeeping records all the financial transactions of business in a systematic order. Transactions are recorded permanently and can be used for future references,
3. To Provide Financial Information
Bookkeeping provides financial information of the business to the management and shareholders. It helps to make future plans and policies.
4. To Detect Errors And Frauds In The Business
Bookkeeping properly records the financial transactions of the business in a systematic and scientific manner. So, it helps to detect frauds and errors.
5. To Know The Financial Position
Actual financial position of the business can be known with the helps of different financial statements prepared on the basis of bookkeeping.
6. Helpful For Tax Purpose
Bookkeeping helps to determine tax liability of the business by providing essential financial data.
The purpose of bookkeeping is to make sure that the financial transaction is correct, chronological, up-to-date and complete. The main aim of maintaining records is to depict the exact position of the company regarding the incomes and expenses.
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