Why do businesses need to produce annual accounts?

Production of annual accounts by the businesses will result in the following.

1. Total purchases and total sales effected during the year.
2. Net purchase value will be arrived after deducting the Closing Stock
3. Profit earned in the business or loss if any in the business will be arrived
4. Direct expenses and indirect expenses will be calculated and there is possibility to cut the expenses if any to the extent of profit earned or to expand the business if there is huge gain including the hike of salary to staff and profit sharing among the partners.
5. Duties and taxes if any payable to exchequer will be calculated for payment or duties and taxes if any paid in excess of the due will be arrived to get refund.

Reply From:

ABHIVIRTHI Tax and Industrial Consultancy

R.R.JAGADEESAN

VAT PRACTITIONER AND INDUSTRIAL CONSULTANT

H-63, Palaami Enclave

New Natham Road

Reserve Line,

Madurai - 625014

Cell: 9994990599.