Anyone who's worked in an office environment at one time or another had to communicate with the accounting department. they are the individuals who pay and send out the invoices which keep the business operating. They do a lot more than that, though. Sometimes referred to as "bean counters" the bookkeeper also gauges profits, costs and losses. Unless you are operating your own business and working as your own bookkeeper, you would have no way of knowing just how profitable - or not - the business is without some form of accounting.
Regardless what industry you're in, even if all you do is keep a checkbook, that's nevertheless bookkeeping. It's an element of even a kid's life. Saving an allowance, spending it all at once - they are accounting principles.
What are some additional businesses where accounting is crucial? Well, farmers need to follow meticulous accounting procedures. Many of them run their farms year after year by taking loans to plant the crops. If it is a good year, a money-making one, then they can pay off their loan; if not, they might need to carry the loan over, and accumulate additional interest charges.
Every business and each individual needs to have some kind of bookkeeping system in their lives. If not, the finances will get away from them, they do not understand what they've spent, or whether they can expect a gain or a loss from their business. Staying on top of accounting, whether it is for a multi-billion dollar business or for a individual checking is a necessary action every day if you're smart. Neglecting doing so can mean anything from a bounced check to posting a deficit to a company's shareholders. Both outcomes can be equally devastating.
Bookkeeping is fundamentally information, and this information is published periodically in business as a profit and loss statement, or an earnings report.
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