No, not just for some regulatory body, but also for your suppliers who might be interested in your financial performance, your investors and other creditors should there be any and more importantly, for yourself.

How it’s beneficial for you we’ve already covered more than enough, however accurate and proper accounting is something that may cast informational light to your financial statements from your creditors and investors perspective.

Your creditors may be interested in seeing if you have enough resources to meet your obligations and keep business going, i.e. in buying further more goods. It also shows how you manage your assets – most importantly your receivables and how they relate to your revenue – how well are you able to collect for the sales.

Investors however are generally interested in seeing how you’re performing compared to the investment they’ve made into your company and how you’re doing generally. How you’re managing your assets and what are your earnings compared to your assets (i.e. what are your assets earning to them), it’s what the investors are interested in.

Accounting isn’t just for you, but for numerous other parties that have different agendas with this information however they’re interested in the same figures – your assets, liabilities and earnings for the period. It’s where the get their information – from your company’s relevant figures.