The management of a business enterprise requires that complete and accurate accounting books and other records are maintained due to the following reasons:
- The business operations are easy to control when proper books and records are maintained
- Day to day records of debtors and creditors are indispensable
- Assets and other resources are easily safeguarded
- It is easy to prepare reliable and accurate financial statements if and only proper books of accounts are maintenance
- It is a statutory requirements to maintain these accounting records and books
What constitutes an adequate system of accounting depends upon a number of factors such complexity of the organisation, nature of the business and other factors.