The Need For Book Keeping And Accounting - SS1 Accounting Lesson Note

Bookkeeping and accounting are essential for any organization, big or small because they help to keep track of financial transactions, financial performance, and the overall financial health of the business.

Bookkeeping involves recording financial transactions such as sales, purchases, and payments, which helps to keep a record of how much money is being earned and spent. Without bookkeeping, it would be difficult to keep track of the financial activities of a business.

On the other hand, accounting involves analyzing, interpreting, and summarizing the financial data recorded in the books. It helps business owners to make informed decisions about the financial operations of their business, such as whether to invest in new equipment, hire more employees, or cut costs.

Bookkeeping and accounting help businesses to maintain accurate financial records, make informed decisions, and comply with tax and other financial requirements. Without these practices, businesses would struggle to manage their finances and make sound financial decisions, which could lead to serious financial problems in the overtime.