Book keeping is the back bone of every organization. Book keeping includes the collection of financial statement of any organization, company or any proper marketing body on daily basis. In business analysis book keeping is used to analyze business presentation.
Why book keeping is important?
Book keeping is very important because it makes easier to organize our financial records. On the basis of book keeping we can make our information secured on papers in the form of documents. Book keeping make us able to take financial decisions of our companies e.g. key operating, future goals and investing.
Book keeping is proceeding by book keepers. Book keepers are responsible for communication with companies to manage their financial information. It is impossible for companies to aware of their present financial position and transactions that occurs within the company without book keeping.
Book keeping and Organize Budget
Book keeping makes our budget update. Basically, budget creates a financial roadmap of our business. If our budget is correct, then we can make plans for future progress and income resources that would cover our company expenses.
Book keeping organize our organization. It is a key skill that every business owner should have. Generally, in companies there are few parties that are interested in our financial records. It includes the employs of our company, customers of our company products, investors and lenders etc.
For example, if you don’t provide relevant information of income statement or annual budget of company to your employs then they could be demotivated. In other case if you don’t provide financial database requested by any clients, investor or lender there are possibilities that they could stop the cash flow. Being disorganized with your book keeping could cause termination of your relationship with these parties. In fact, “poor book keeping or accounting” is one of the top reason business fail
Without book keeping you are blindly driving your business