The following are the advantages of book-keeping:

  1. Helpful in ascertaining profit or loss
    Book-keeping keeps complete records of business transactions. Thus, profit or loss from business transactions can be easily ascertained.

  2. Knowledge of financial position
    With the help of recorded financial transactions under book-keeping, a true financial position of a business concern can be known at any time.

  3. Helpful in determining tax burden
    A business concern is required to pay value added tax, income tax etc., to the government. Such tax burden can be easily determined with the help of book-keeping records.