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Offers the economical place- It helps the small business individual to draft a harmony sheet at the end of on a yearly basis, which makes it possible for them to determine the monetary scenario of a corporation. It highlights the value of property and liabilities of your business.

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Following preparing of ledger, demo balance is passed for The scholars to examine the arithmetical accuracy on the publications of accounts.

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Law and income tax- Together with the help of recorded textbooks of accounts, accounting helps the businessmen to repay the appropriate tax it owes to The federal government. What's more, it acts as proof while in the court docket of legislation.

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