One reason why accounting is important to a small business is that it shows how much your business is worth.

Question

Quizplus · Accepted Answer

Accounting helps to track and record all financial transactions in a business, which includes its assets, liabilities, income, and expenses. By analyzing these records, one can calculate the net worth of the business, which is a key indicator of its financial health and growth potential. Thus, accounting plays a crucial role in determining the value of a small business.

One Reason Why Accounting Is Important to a Small Business