Why do businesses keep accounts?

In earlier article, we understand the terms: accounting,accounts & bookkeeping, next is what are the major reasons for keeping accounts?Some major reasons for businesses to keep accounts are as follows:- Keeping track of money by showing where it came from and how it has been spent By producing accounting information, these accounting records are translated into useful information to effectively and efficiently run a business for example keeping records of the businesses’ fixed assets to safeguard its assets or maintaining expenses records to ensure correct amounts are paid correctly and at the correct time As businesses are getting more complex like for example it is no longer the sole proprietorship type instead we have now many public listed entities Many users would want businesses to keep accounts like for example Inland Revenue, Securities Commission,etc

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