2006-09-10 07:07:17 · 11 answers · asked by soumya B 1 in Education & Reference ➔ Other - Education
In no particular order: Tax, knowing how much profit/loss you're making, ensuring that you do not have any fraud commited, tracking documents show your shareholders the progress you are making, application for other finanical things is easier and quicker, plus you have evidence of what happened to your accounts if facing legal issues.
2006-09-10 07:15:06 · answer #1 · answered by VRS 2 · 0⤊ 0⤋
Accounts are important for a business to monitor their financial progress for example if the profit last year is a lot more than the profit this year what has gone wrong and what can be done to overcome difficulties ie price changes,promotion etc
2006-09-10 11:58:46 · answer #2 · answered by Elaine 1 · 0⤊ 0⤋
If you do not keep accounts, you do not know whether you are pricing your goods correctly to cover all your costs!
Okay, so you bought an article for £1 and sold it for £1.10 - that gives you 10p profit. But you will find you need to remember costs such as rent, rates, wages, electricity and so on! so how do you know if you are actually making a profit if you don't keep accounts!
It also helps fraud to be cut down. If you do not have accounts, you will find it impossible to get things like a company bank account, loans and so on. Oh, and the Government will not know how much tax to take from you!!!!
2006-09-10 08:10:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
business keep accounts to show all profits and loss incurred,also can be used to show how much profit is made so quartly payments to the goverment can be made.If employees are involved you are then dealining with w2 formsn social security etc.I think small business have to show a profit in 3 or4 years.The years no profit shown can be taken off income tax.Keep all receipts fo your accontant
2006-09-10 07:17:56 · answer #4 · answered by richard1943 1 · 0⤊ 0⤋
EASY as ONE TWO THREE:
1 - it is a legal requirement of companies house (Ltd company).
2 - so you know how the business is doing - gives performance idicators
3 - lets you make better decisions based on the company performance
oh and.....so you can calculate how much tax you owe!
All that said...its a pain in the ***!
2006-09-10 07:18:27 · answer #5 · answered by bigbadbert 2 · 0⤊ 0⤋
apart from taxes, a business owner must be able to evaluate if she is making a profit and, if so, from what activities or products is the business making the most money.
2006-09-10 07:09:56 · answer #6 · answered by cassandra 6 · 0⤊ 0⤋
Please know that I see no longer something about your account that would want to aspect out it truly is been compromised or hacked in any way. besides the undeniable fact that, when you're ever in contact some one else is getting access for your account i like to recommend replacing your password. Our engineering crew is presently investigating the area and we intend to have it corrected once attainable. Please enable us 3-7 days to resolve this example.
2016-11-25 23:46:50 · answer #7 · answered by ? 4 · 0⤊ 0⤋
cause it's business & not charity !
even charities got to keep accounts, as does the housewife !
2006-09-10 07:10:02 · answer #8 · answered by sεαη 7 · 0⤊ 0⤋
to see how much they have earned and to look back on at profits losses and wages payed out
2006-09-10 07:16:04 · answer #9 · answered by nathan654845 1 · 0⤊ 0⤋
so that they know how much money they earned.
2006-09-10 07:09:16 · answer #10 · answered by Anonymous · 0⤊ 0⤋