Objective of acconts

To keep Systematic Records
The main objective of accounting is to keep a systematic record of financial transactions which helps the users to understand the day to day transactions in a systematic manner so as to gain knowledge about overall business.

To Protect Business Properties
Accounting provides protection to business properties from unjustified and unwarranted use. Information about the above matters helps the proprietor in assuring that the funds of the business are not necessarily kept idle or underutilized.

Ascertain Profit
Another objective of accounting is that it helps in ascertaining the net profit earned or loss suffered on account of carrying the business which is done by keeping a proper record of all books of accounts with respect to revenues and expenses of a particular period.

Ascertain the Financial Position
The accounting also helps the businessman to know about his financial position. This objective is served by the Balance Sheet or Position Statement. The Balance Sheet is a statement of assets and liabilities of the business on a particular date. It serves as a tool for ascertaining the financial health of the business.

Facilitate Decision Making
Accounting also helps in the collection, analysis, and reporting of information at the required points of time to the required levels of authority in order to facilitate rational decision-making.

Information System
Another objective of accounting is that it can be defined as accounting functions as an information system for collecting and communicating economic information about the business enterprise. This information helps the management in taking appropriate decisions.