Difference between capital and revenue items of expenditure and income Essay

be involves any employment, caller-up or somebody record their financial transactions, such as payments coming in or salaried going step to the fore. It is very important for a business to record their transactions for a number of reasons Economic decisions If a company is going to succeed then its needs to be aw be of what it brush off and cannot afford and how the resources available will be effectively used and not endue to waste. Inventory Knowing how much of a merchandise you have can be save you from grease ones palmsing the same product again and wasting money on something you womb-to-tomb need. Stocking up on a certain product that is no longer making sales could make it much than prone to damage or theft, so making the product un-sellable.By recording the amount of stock you have go away you could save money and make a larger network, this would then further just the stakeholders you have investing in your business. supervise activity during the process of buying or selling goods mistakes can be make and those mistakes can properly be place and dealt with if it is kept on a record. care an account of your stock would also keep open theft, damage or loss of property. withal if there are any products exported out to different countries then accounting for which countries buy more products would help you provide more stock for that country to maximize profits. criterion financial performance A business needs to know how well they are doing this can benefit them in a number of ways. If in the first derriere a business is doing well solely in the second quarter the profit dips then the problem can slow be assessed and dealt with. However this can only be accomplished if the business keeps a record of the intakes and outtakes.