Benefits of bookkeeping
1. Purpose is to measure the success of the business.
Bookkeeping to make ventures The results of operations Financial position of the business and the stability of the business. The accounting office account. Items will be recorded Occurred in the business, such as investment income and expenses attributable to such business. Without the contribution of private (equity) to record with. When recording items That has already occurred Information was then recorded Can be prepared financial reports such as balance sheets and income statements for the business which is reflected in the following.
Income statement reflecting operating results in the period that the Company's income or the amount it costs. Profit or loss It also helps to assess the ability of future as well as to analyze the growth prospects of revenue accounting office.
Balance sheet reflecting the financial position of the Company include the assets, liabilities and equity. Stability much. Assets available to indicate the potential for growth and competitiveness of businesses in the future. It also shows the liquidity and risk at the moment.
Statement of Cash Flows To reflect changes in financial position of the Company over a period of time is divided by 3 activity.
1. Cash flows from operating activities
2. Cash flows from investing activities
3. Cash flows from financing activities
2. To serve as a tool for planning and business decisions.
Account information from the office account is useful for planning and decision making. Estimate from the events of the past, present and future, which may take the form of reports and analysis. Office accounts have been prepared As a management tool allows users to operate more efficiently. Help in forecasting future events are expected to occur with the direction and confidence is high. Can be used to analyze the feasibility of the investment will occur in the future, so if there is a clear accounting office was to be able to develop the business to grow sustainably.
3. Purpose is profit planning and cost control of the company.
Due to the accounting office accounts correctly. To the Company the amount of costs and expenses incurred. And can calculate the cost of goods and services of the business correctly. This will help in deciding the price of goods or services of the business. Help to control costs and expenses. According to the estimates defined. And can be analyzed Improve the unnecessary expenditure To help in planning the operation correctly fit the resources available to the entity. In addition, the accounting records of the accounting office is able to check for evidence
4. So as a means of financing.
In preparing the accounts of the accounting office will allow us to report the money as a medium to contact various businesses as evidence to build confidence to creditors and financial institutions such as when we need additional capital is needed. the financial report is to be included for a loan with a bank or lender by a bank or lender. To the financial reporting of the Company. To credit approval Of reliability and the ability of the applicant to repay the loan. Including interest rate appropriate to the risk that the lender will receive. The benefits in order to make acquisitions to get the desired loan and pay interest at a reasonable rate.
5. that the Company's internal control system and the alarm company.
Having a good accounting system of accounting. Make a good internal control system that helps prevent fraudulent activities that may occur. Due to financial information As well as items that cost accounting office must have evidence that can attest to the background, which makes the likelihood of fraud can be difficult. In addition, accounting data can also be analyzed for unusual things happened for flaws, weaknesses and leaks. This can be a warning sign to the business plans prepared to prevent and solve problems. Potential
6. For the sake of planning. Taxable accurately and economically.
The preparation of an accurate account of the accounting office. Will know the exact income. Tax savings can plan appropriately and correctly taxed by law.