Objective of Accounting: Unlock the 3 purpose why you prepare accounts

by Tau Tat | 5 October 2025 | Accounting topics | 0 comments

✨ Why we do accounting?

Accounting is not just about filling numbers — it’s about making information useful for different people:

1️⃣ For Yourself (The Business Owner) 🏠

Keep track of your income & expenses.
Know which part of your business is earning or costing you money.
Make better decisions for growth or savings.

2️⃣ For the Government 🏛️

Comply with tax laws and regulations.
Submit accurate reports like income tax, GST/SST, and e-invoices.

3️⃣ For the Bank / Lenders 🏦

Show your financial health when applying for loans or credit.
Prove that your business is trustworthy and capable of repaying.

💡 Simple Tip: Always remember — accounting is done for different eyes, not just for fun!

Explore this post

Tau Tat

Mr. Lim Tau Tat is the Director of LTT Outsourced CFO Sdn. Bhd., a Malaysian financial firm dedicated to transforming business management for SMEs and entrepreneurs. He specialises in implementing and optimising Bukku Cloud Accounting, guiding companies to digitalise their records and streamline critical financial operations, including bookkeeping, payroll, and e-Invoice compliance. Lim’s philosophy is centred on providing a simple, clear pathway for business owners to manage their finances wisely. By combining cloud efficiency with strategic CFO insights, he ensures clients move beyond routine compliance and gain the actionable data needed for sustained growth while LTT expertly handles the numbers behind the scenes.