Accounting performs an essential part in operation of business administration because it assists you in tracking income and expenses, ensure legal compliance, and supply shareholders, managers, and government authorities with the quantifiable financial information, which then are used for business decision making purpose. There are three main components that are generated by the records, of which the financial statement is made-up: The income statement, which delivers information about the profit and loss of company The balance sheet, which provides a clear picture on the financial position of company as on a specific date. The cash flow statement, which is a bridge between the income statement and balance sheet and provides information about the cash inflow and outflow during a certain phase of time. It is extremely important to keep your financial records solid and up-to-date if you wish to retain your company's financial position robust. are required You to: Explain the reasons why Accounting is important for your business, regardless if it is small or large