Need to keep accounting records for your money
Happy Sunday beautiful people,
I hope you are having a nice weekend.Today i am sharing with you on the need to keep accounting records for your money,importance and some of the challenges people or companies make when they don’t account for their money.
Why we need to keep accounting records
- helps with forecasting and planning.Accounting for our money helps us to plan for the future and budget according to what is to be prioritised.
- helps to identify budget surplus and deficits.By accounting for your money after each financial period,you get to know the various expenses incurred and account for the available income
- Budgeting.To identify how one or a company has been able to use their finances according to the budget provided after each financial period.
Challenges faced when there is no accounting records kept for a particular amount of money
- There may be possibilities surplus and deficits which may interfere with the activities of the company.
- Partners or members of the company are not in a position to corporate since some of the money used or earned may not be accounted for.
- One may start deviating from their budgets and plans because they no longer keeps their records hence they are not aware of how they use their money and in what quantity (budget becomes useless)
- Goals and objectives of a company or individual may not be met due to loss of sense of direction(hap[pens when they start deviating from their budgets)
Keeping accounting records leads to self-trust,accomplishment of goals and budgeting becomes easier.
Thanks for reading and feel free to ask questions.Have a nice afternoon.
How should i,we,you and us account for our finances in a particular period?
This will be the next blog post:HOW TO ACCOUNT FOR YOUR MONEY