There are many purposes for accounting within an organisation such as; Record of Trans-
actions, Monitoring Activity, Control, Management of Financial Performance and Measure-
ment of financial performance.
Record of Transaction
Record of Transaction is where transactions are recorded in different methods; such as in-
voices, bookkeeping and folders/journals.
By keeping records of invoices from suppliers and customer transactions, paychecks and
all other expenses that are covered monthly or one-time purchase, they allow the business
to run smoother, as it allows the organisation to keep track of its money, income and ex-
penses. If a company is struggling to manage its transactions it can become unaware of
what bills they’ve paid and which bills they have not paid. By keeping up to date records of
their transactions it allows managers to look at reports and find areas to which are impor-
tant and other margins to which they can cut costs. As if they fail to keep track of their fi-
nancial performances they could be paying incorrect bills or failing to pay bills.
Monitoring Activity
By monitoring activity it allows the business to be updated in their different practices they
conduct. It allows them to observe their sales, payments, expenses and cash balance etc.
By keeping records on a regular basis, it provides a good indication of how the business is
doing, where they are earning their biggest profits and know their largest losses. It also
helps them identify which payments they have paid already. It also allows them to keep
track of their day to day expenses and keep them knowledgeable on their available funds.
Control
Control is a very important aspect of accounting as it allows bookkeepers and other jobs in
a similar position to track the records made. It also allows there to be a physical record of
the transaction. It can create an opportunity to control different sections within a business
and can oversee any relation between them and control procedures or consult with man-
aging directors with advice for control.
Management of the business
Management of the business is given to a responsible personnel to hold account for; plan-
ning, monitoring and controlling resources. Better management of the business would al-
low the business to make better decisions and successfully handle the control of resources
actions, Monitoring Activity, Control, Management of Financial Performance and Measure-
ment of financial performance.
Record of Transaction
Record of Transaction is where transactions are recorded in different methods; such as in-
voices, bookkeeping and folders/journals.
By keeping records of invoices from suppliers and customer transactions, paychecks and
all other expenses that are covered monthly or one-time purchase, they allow the business
to run smoother, as it allows the organisation to keep track of its money, income and ex-
penses. If a company is struggling to manage its transactions it can become unaware of
what bills they’ve paid and which bills they have not paid. By keeping up to date records of
their transactions it allows managers to look at reports and find areas to which are impor-
tant and other margins to which they can cut costs. As if they fail to keep track of their fi-
nancial performances they could be paying incorrect bills or failing to pay bills.
Monitoring Activity
By monitoring activity it allows the business to be updated in their different practices they
conduct. It allows them to observe their sales, payments, expenses and cash balance etc.
By keeping records on a regular basis, it provides a good indication of how the business is
doing, where they are earning their biggest profits and know their largest losses. It also
helps them identify which payments they have paid already. It also allows them to keep
track of their day to day expenses and keep them knowledgeable on their available funds.
Control
Control is a very important aspect of accounting as it allows bookkeepers and other jobs in
a similar position to track the records made. It also allows there to be a physical record of
the transaction. It can create an opportunity to control different sections within a business
and can oversee any relation between them and control procedures or consult with man-
aging directors with advice for control.
Management of the business
Management of the business is given to a responsible personnel to hold account for; plan-
ning, monitoring and controlling resources. Better management of the business would al-
low the business to make better decisions and successfully handle the control of resources
