What Are the Benefits Of Accounting

 In today's time the use of accounting has increased so much. So that not only the businessmen but also the government, general public, investors, students and people from other parties are getting benefited. 

This method of accounting has the following advantages. These are given below-

Check also:-  Functions of Accounting

Benefits of Accounting

1. Loan Assistance

2.Help in comparison

3.Assistant in tax assessment

4. Evidence in Court

5. Helpful in decision making to the manager and employees

1.Helpful in taking loan – A businessman needs money to expand and make the business successful and also needs loan to run the business properly. If that businessman keeps the accounts of his business properly, then he gets the facility to take loan from any financial institution or banks. This is the first advantage of accounting.

2. Helping in comparison – With the help of accounting, the accounts of different years are compared by a businessman or employee. On the basis of which he is able to get many information and from this he starts further action. With this, he can increase the profit by making plans for growth or expansion in the future and at the same time can take necessary steps to avoid losses. This is the second advantage of accounting.

3. Helpful in tax assessment - As you would know that a businessman is an important part of the society. He has to conduct business within the society. For this, traders pay many types of taxes to the government. Like- Income Tax, Sale Tax, Manufacturer Tax, Entertainment Tax, Estate tax etc. Accounting helps in determining these taxes. If proper accounting is not done, then arbitrary government can collect tax. This is the third advantage of accounting.

4. Evidence in the court - It is common to have quarrels in the business world. If for some reason there has been a dispute, then in that case accounting can be presented as evidence. This is the most important advantage of accounting.

5. Helpful in decision- making to the manager and employees – Traders who use accounting method in their business. Decision making is facilitated by the employees of that business. Like- Salary, Bonus, Allowances etc. of employees from financial accounts.

Tow Main Advantages of accounting

Two advantages of accounting are given below as follows-

1. No matter how educated a businessman may be. More than thousands of transactions take place every day in business. It is not possible to remember all those deals. Accounting removes this shortcoming. This is the first advantage of accounting.

2. Providing correct valuation for selling any business is another advantage of accounting.

Conclusion

Here in this post we all related information about the Benefits Of Accounting so if you want to understand the advantages of Accounting then you can read our post till the end.