Accounting & Book Keeping
What Is Financial Accounting?
Financial accounting involves recording and summarizing financial transactions to present a company’s financial performance and position. It provides essential information to external stakeholders such as investors, lenders, and regulatory authorities through key financial statements including the balance sheet, income statement, and cash flow statement.
Financial accounting follows recognized standards such as IFRS and GAAP to ensure accuracy, consistency, and comparability of financial information. Managed by qualified professionals and subject to independent audits, it supports informed decision-making, performance evaluation, and transparent communication with investors, creditors, and management.
What Is Bookkeeping?
Bookkeeping is the systematic recording of a company’s financial transactions, including sales, purchases, payments, and receipts. It ensures accurate and up-to-date financial records, forming the foundation for financial statements, compliance, informed decision-making, and effective budgeting and forecasting.
Why Accounting and Bookkeeping Are Important for Business?
Informed Decision-Making : Helps management identify financial trends and make strategic decisions for long-term success.
Regulatory Compliance : Ensures compliance with tax laws and regulations, reducing the risk of penalties and fines.
Financial Health Assessment : Enables lenders and investors to evaluate creditworthiness and investment potential.
Budgeting & Forecasting : Provides clear financial insights to plan budgets and anticipate future financial needs.
Cash Flow Management : Helps monitor cash inflows and outflows to maintain liquidity and financial stability.
Effective Business Planning : Supports strategic planning by identifying strengths, weaknesses, and growth opportunities.