We won't stop helping you especially during these difficult times.


Accounting and accountability is a very crucial aspect of business management. It forms the basis for management decisions to be made. It lets you know the financial position of a business and provides a hint of how profitable a business is. Without accurate data and information on assets, liabilities, loans, and profits, it is impossible to make correct decisions that will affect the business positively. So many businesses have gone under due to lack of proper record keeping or bookkeeping.

There is no way management will know if and when to invest in the business if records are not updated, ledgers are not balanced, and journals are not properly managed. It is safe to say that there is a direct relationship between accounting and decision-making. The main aim of accounting and bookkeeping is to carefully record every transaction to discover if a business is yielding profit or running at a loss. As stated earlier, management and investors base their decisions on the accounting figures produced else they’d act blindly. It is only accounting systems that let us know how liquid, efficient and profitable a business is. The amount paid as business and personal income tax depend on the revenue generated, and income made for the business year under review. These figures cannot be gotten without the use of proper accounting mechanism

Importance of accounting and bookkeeping

  • Without proper accounting, you wouldn’t know how much goods you have in store if you are a salesperson. Inventory keeping is crucial as it lets you know how much of each type of goods is left. It also lets you know when to request for or replace certain items so that trading activities will not be grounded.
  • Good record keeping and accounting prepare you for an audit. Hence, you wouldn’t have to run helter-skelter when auditors or external bodies comes calling.
  • Adequate bookkeeping and accounting is the best way to prevent fraud. It means you are proactive and it helps you block every loophole that people with negative intentions may want to manipulate.
  • When records are kept properly, finance is well managed. You know when to issue checks and when not to. Consequently, you know which check number or control number has been used to forestall manipulation.
  • Accounting also lets you know the performing aspects of the business and the departments that need monitoring and attention.

There is a reason why companies and multinationals hire experienced accountants. With an experienced accountant in your ranks; it affords you the luxury of concentrating on other aspects of business and company management. It also means that you can rely on figures and data given to you. Some companies do not have an accountant within their ranks and the lack of growth is always evident. The role of an accounting expert cannot be substituted or exchanged. If you care about the growth of your business and you do not want unnecessary exposures, it is important to invest in record and bookkeeping.

Leave a Comment