it is necessary to provide depreciation even business is running in loses or in profit
because depreciation provides fund for future and remove the burden of fund for purchasing new machinery when old machinery are broken down.
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it can provide passed business running data
it depends on what kind of business you are running.
* To Get Sufficient fund for running the company, * To make use of the obtained finance in a efficient manner, * To maximise the profit by minimising the cost, * To provide proper information for decision making, * To enable sufficient fund flow!FINANCE IS THE LIFE BLOOD OF BUSINESS WHICHEVER IT MAY BE!
Finance is important to business as without it businesses would not be able to start up or survive. In order to start a business sources of finance are needed such as grants or loans used to buy essential items such as a vehicles, premesis and other equipment. Finance is needed for a businesss to coninue running as money is needed to face running costs such as electicity and rent. Finance is also needed in expanding a business. If you plan the financial side of a business accurately you will be able to track the progress of your business in terms of profit and cash surpluses. Accurate financial documents will allow you to keep track of your cash flow and monitor how much of your loans you have paid off. You can measure your success through accurate fiancial planning. Financial documents will allow you to see when you have enough retained profits to expand and improve your business. We must remember a proverb that It takes money to make money. Every new venture needs seed money. It is required for many purposes, ranging from survival in bad times to bolstering the next success in good ones. It is as important as vision and a great product, they are crucial to making the good stuff happen.
When your running on your right leg.