Why Accounting is Important for Business Growth?

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Why Accounting is Important for Business Growth?
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• Accounting plays a crucial role in running a
  business. It assists the business in taking
  important decisions. The summary of all
  transactions made by the business in a year or a
  period of time, arranged in an orderly set of
  financial statements, can help you see what is
  going on in a business clearly.

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• The financial statements can also help a business
  see the results of previous decisions taken by
  the business owners and how these decisions
  impacted the business. Thus, it is paramount to
  have a basic understanding of accounting for
  growing your business. If you want to learn the
  basics of accounting then it is recommended that
  you sign up for an Accounting Certificate Course
  in Ahmedabad from Super 20 Institute or any city
  of your choice.

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• Now, before we jump into why accounting is
  important for business growth, let us first take
  a look at what accounting is.
• Accounting is a detailed systematic recording of
  the financial transactions of a business and
  financial statements are formal written records
  of a business position and financial activities.

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• The three chief financial statements made by your
  records are
• The income statement that informs you about the
  profit and loss.
• The balance sheet gives you information about the
  financial position of your business on a
  particular date.
• The cash flow statement informs about the cash
  generated and spent during a particular period of
  time.
• Here are some reasons why accounting is important
  for the growth of a business.

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• For Evaluating Your Business Performance

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• Accounting maintains a record of expenses, gross
  margin, and possible debt. This helps to give you
  a better understanding of the result of
  operations of your business as well as your
  business financial standing. Simply put, it
  helps you to see a clear picture of what is going
  on in your business from a financial point of
  view and this allows you to evaluate the
  performance of your business by comparing your
  current accounting records with your previous
  accounting records.

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• Helps in Conforming to Governments Laws and
  Regulations

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• There are various government laws and regulations
  that a business has to comply with otherwise it
  can face penalties. Most of these laws involve
  accurate reporting of financial transactions.
  Accounting helps you to accurately record the
  financial information as it records these
  transactions in a systematic manner. This makes
  it easier to verify revenues, expenditure
  liabilities, and assets. Thus, in this way,
  accounting helps in ensuring statutory compliance.

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• Budgeting and Future Projections

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• Accounting helps in budgeting and predicting the
  expected revenues and expenses. You can compare
  your current accounting records with your
  previous accounting records and allocate the
  budget accordingly and this will also give you an
  estimate about what revenues and expenses you can
  expect to incur in the future.
• Business trends and projections are formed on
  previous financial information to make your
  operations incur profits and this financial data
  will only be appropriate if it is recorded in a
  systematic manner through accounting.

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• Filing Financial Statements is only possible
  through accounting

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• Accounting plays a major role in the filing of
  financial statements of a business with the
  Registrar of companies as well as for direct tax
  and indirect tax filing reasons. Thus, filing
  financial statements is only possible through
  accounting.

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• Accounting is important for getting loans and
  investments

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• Investors and lenders never invest in a business
  without having any information about the
  profitability of a business. To obtain knowledge
  about this, they require financial statements of
  your business.
• Thus, without maintaining accounting records of
  your business you would not be able to find
  investors for your business and as a result, your
  business will not grow.

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• Conclusion

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• Maintaining accounting records of the financial
  transactions of your business is of utmost
  importance for the growth of your business. It is
  crucial for big as well as small businesses to
  maintain a systematic record of their financial
  activities so that they can evaluate their
  performance and formulate profitable strategies
  for the future. Learning Accounting or GST course
  in Ahmedabad from reputed institute is important
  in order to comply with the governments laws and
  regulations. You might miss out on getting
  investors to invest in your business if you do
  not have accurate accounting records of your
  business.
• Article Source
• https//techashton.com/why-accounting-is-important
  -for-business-growth/

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• Super 20 Training Institute
• www.s20.in
• 91 7069 646028
• Address
• 205, Narayankrupa Square,
• Opp. H K Commerce College,
• Gandhigram Railway Crossing,
• Ashram Road,
• Ahmedabad 380009