Need of Branch Accounting

Branch Accounting may be needed :

1. To ascertain financial status of each branches.

2. To compute commission of each branch manager, if it is based on profit of the branch.

3. To evaluate performance & progress of each branch.

4. To know the prosperity of the business and branches as well, and which may provide avenues for further expansions.

5. To know the requirement of cash & goods of each branches.

6. To know profit or loss of the concerned branches for a specific period.

7. To know profitability, strengths and weakness of the branch.

8. To give concrete suggestions for improvements/ corrections on mistakes.

9. To meet audit requirement of each branch, which may be mandatory as per law.