What are the objectives of bookkeeping?

Answer 1

The objectives of bookkeeping include:

Recording Financial Transactions: To accurately record all financial transactions, including sales, purchases, expenses, and payments, providing a clear and detailed financial picture of the business.

Organizing Financial Data: To organize financial data systematically, facilitating easy retrieval and analysis for decision-making, financial reporting, and tax compliance.

Maintaining Accuracy: To ensure the accuracy and reliability of financial records by adhering to standardized accounting principles and practices, reducing errors and discrepancies.

Facilitating Financial Analysis: To provide data for analyzing the financial health and performance of the business, enabling stakeholders to assess profitability, liquidity, and solvency.

Supporting Decision Making: To assist management in making informed decisions by providing timely and relevant financial information, guiding strategic planning and resource allocation.

Compliance with Legal Requirements: To fulfill legal and regulatory obligations, such as tax reporting, auditing, and financial disclosure, ensuring the business operates within the framework of applicable laws and regulations.

Overall, the primary objective of bookkeeping is to maintain accurate, organized, and reliable financial records that support effective financial management, reporting, and decision-making within the business.

Answer 2

The main objective of bookkeeping is to keep complete record of business transactions. It will be helpful to reduce the errors. For permanent record of business, we first record all transactions in our journal and then we transfer it to ledger through posting.

The other main objective of bookkeeping is to know the profit or loss of business. So, we make the trading and profit and loss of the business. We show all the incomes and expenses in it. If our total revenues will more than our total expenses, we will get net profit. In the case, the expenditure will more than our revenue, we will get net loss.

Here are some points:

Providing the information of total sale and purchase of business.

Supplies the information of creditors and debtors of business.

Get knowledge of quantity and Value of stock.

To provide the information to interested parties like owner of business/ shareholders, managers , creditors , debtors , employees , Govt. etc.

Answer 3

to record permanently all business transaction