The following are the advantages of book-keeping:
- 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.
- 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.
- 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.