Importance of Bookkeeping - JSS1 Business studies Lesson Note

Bookkeeping is crucial for several reasons:

 

• Financial Control: It helps businesses monitor their financial health by tracking income and expenses.
• Decision Making: Accurate financial records aid in making informed decisions, such as budgeting, pricing, and investment.
• Legal Compliance: Proper bookkeeping ensures compliance with tax laws and regulations, avoiding penalties and legal issues.
• Financial Analysis: It provides data for financial analysis, including profitability, liquidity, and solvency.
• Investor Confidence: Transparent and well-maintained financial records instill confidence in investors and lenders.