The primary function of accounting is a recording of all the transactions of the Company. Recording a transaction is called Bookkeeping and is part of accounting with limited scope. Then periodical report is generated summarizing the performance of the Company. The reporting is normally done in the form of financial statements – Profit & Loss Statement, Trial Balance and Balance Sheet. The management further evaluates the performance of the Company during a particular period through preparation and analysis of MIS reports.
The financial statements are part of the statutory requirements, primarily Income Tax filing and are monitored by the Government.
Benefits of Bookkeeping & Accounting
The various financial statements facilitate to review the specific performance of the Company in measurable terms – expenditure, revenue, asset & liability management, etc.
The Management Information System Reports generated from financial statements enable decision makers budgeting, corrective actions, cash management, cost control, statutory requirements, etc.
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