What is the importance of Bookkeeping / Accounting?

Bookkeeping is a very important aspect for any business expected to thrive in the long term.
This is because it is the key guidance to success or failure for any business entity. Failure to do
proper accounting/ bookkeeping means you’re driving your business blindly. Therefore, book
keeping is crucial for any business success.


Why?

1. It helps business owners and stakeholders understand the performance of the business
2. It helps Donors/ funders/Investors understand the amounts spent and the deficit
3. It helps bring accountability of every money spent
4. It gives information that assist in strategic decision making for any entity
5. It acts a guide when preparing future budgets
6. It is useful in tax filling.
7. It’s a legal requirement
8. Its assist in better cash flow management by tracking down your payables and
receivables.

What does it entail?

It involves maintaining proper records, i.e. all financial transactions must be recorded and
basically includes, receipts, purchases, payments etc.

However, most business owners do not have the time to keep track of each and every expenditure, invoices raised, which customers are owing them, which suppliers do they need to
pay as they are busy focusing on growing their businesses.

Hence at MGK we come in handy to bridge the gap and will assist you in bookkeeping services through our able accounting department and saves you the headache.
For any assistance kindly reach us on:

bkamau@mgkconsult.co.ke
nwaithaka@mgkconsult.co.ke