Bookkeeping Importance and vision

What should be Objectives of Bookkeeping?
The main impartial of book-keeping is to keep a complete and correct record of all the financial transactions in a methodical orderly, logical manner. This confirms that the financial effects of these transactions are reproduced in the books of Accounts
The next key objective is to discover the overall effect of all recorded transactions on the final declaration of the company. Book-keeping will eventually ascertain the final accounts of the company, namely Manufacturing and trading account , the Profit and Loss Account and the balance sheet or Financial statement and note to accounts
Next famous and generally know purposes of having bookkeeping is to have such records can be maintained to show the financial position of each and every head/account of income and expenditure present in trail balance . Through book-keeping, detailed information about each expense or income could be obtained promptly.
Say for example a Company makes sales in both cash and credit. Each of these sale transactions will be recorded. When a credit sale is made, the creditor’s account will be recorded. So at any time, the management of the company can determine which creditors owe them how much money by just looking at the records/accounts.
Also, the maintenance of books of accounts and financial statements is a legal requirement in many cases. In the case of companies or banks or insurance companies, there are acts that require such firms to keep and maintain financial records. In such a case, book-keeping becomes mandatory.
Activities of Bookkeeping

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