Advantages Of  Book-keeping :

From the above objectives of book-keeping, the following advantages can be noted

             i. Permanent and Reliable Record: Book-keeping provides permanent record for all business transactions, replacing the memory which fails to remember everything.

ii. Arithmetical Accuracy of the Accounts:With the help of book keeping trial balance can be easily prepared. This is used to check the arithmetical accuracy of accounts.

iii. Net Result of Business Operations: The result (Profit or Loss) of business can be correctly calculated.
iv. Ascertainment of Financial Position: It is not enough to know the profit or loss; the proprietor should have a full picture of his financial position in business. Once the full picture (say for a year) is known, this helps him to plan for the next year’s business.

v. Ascertainment of the Progress of Business: When a proprietor prepares financial statements evey year, he will be in a position to compare the statements. This will enable him to ascertain the growth of his business. Thus book keeping enables a long range planning of business activities besides satisfying the short term objective of calculation of annual profits or losses.

vi. Calculation of Dues : For certain transactions payments may be made later. Therefore, the businessman has to know how much he has to pay others.

vii. Control over Assets: In the course of business, the proprietor acquires various assets like building, machines, furnitures, etc. He has to keep a check over them and find out their values year after year. with the purpose of giving such information that accounting came into being.

Accounting is considered as a system which collects and processes financial information of a business. These informations are reported to the users to enable them to make appropriate decisions.