Importance or advantages of accounting

The importance or advantages of accounting are as follows:

a)Complete record: Accounting facilities the replacement of human by maintaining complete record of financial transactions. Human memory is limited by its very nature. Accounting helps to overcome this limitations.

b)Knowledge of profitability: Accounting facilities to ascertain net results about the profit or loss of operation by preparing profit and Loss Account or Income Statement.

c)Knowledge of financial positions:
Accounting facilities to show financial position of the organization by preparing Balance sheet or Position Statement

d)Reduction in errors: Accounting facilities to records all business transactions scientifically and systematically  ,which enable to detect errors and frauds that have already taken place and also take steps to prevent their recurrence.

e)Help in decision making: n errors: Accounting facilities the users to take decisions by communicating accounting information to them. Similarly, accounting helps the management in planning and controlling business activities and in talking decision for future.