1. Maintenance of record of business transactions
The maintenance of systematic record of all financial transaction in the book of account is the primary objective of accounting. Even the most brilliant manager or executive cannot remember all the various transaction carried out in the business firm such as purchases, sales, receipts etc. thus, the complete and systematic record is maintained.
2. Calculation of profit and loss
The owners of the business are keen to have some idea about the profit and loss of their organization. Thus, the accounting helps to find out profit and loss of business firm by calculating total income and deduction it with total expenses of the accounting year which is the net profit of that year if income is higher than expenses.
3. Providing accounting information to its users
The accounting information is generated by the accounting process which is communicated in the form of report, statement, graph, and chart to the users who need it for decision making purpose.