It is a vital accounting activity that helps organizations record their financial transactions and health, allowing enterprise owners to make smart, informed decisions for the firm. 

• Budget management: It is crucial for any organization that well-thought-out budget management strategies are put into place. The need for a company’s fiscal information to be precise and organized takes precedence when it comes to accounting operations. Having a sturdy bookkeeping function allows organizations to access financial data and use it efficiently.
• Set business goals: A clear picture of an organization’s fiscal health helps enterprise owners set realistic goals for the company. While growth is the motivation for every business, it is essential to understand how an organization’s financial health can impact investment decisions. 
• Tax planning: It is paramount for organizations to file regular and accurate tax returns to help their company grow and abide by the tax regulations of the state. This allows organizations to keep their financial transaction receipts in one place, making it easier to prepare for the taxation time of the year.
• Decision making: An activity that gives organizations a detailed insight into the fiscal structure and standing, it helps firms make sound, beneficial business decisions. Whether it’s an investment decision or that of acquisition, bookkeeping is the way to base the decisions on. 
• Build trust with investors: Maintaining your accounts, whether in the form of charts, graphs, or spreadsheets can be excellent material to present to investors and gain their trust. When investing in an organization, investors tend to look at the financial health and longevity of the company; bookkeeping helps organize that information for investors.