what is the purpose of producing accounting information?
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
If you were running a business wouldn't you want to know where your income is coming from and what your expenses are going on, and how much of each etc? Not to mention it keeps the tax man happy.
Answer 2 :
Its a legal requirement to produce accounting information, it also allows investors to make informed decisions. In terms of internally for the company though, you can see where your money is going in order to control costs and to plan for the coming year/months etc. You can take the information to the bank if you need a loan too!
Answer 3 :
It allows you and your investors to know how much money was earned, spent and whether or not the business made any money. That way you know whether or not it is worth staying in the business. Also accounting information can let you know what you are spending your money on so you can try to be more efficient with your resources and hopefully make even more money.
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