Role of Accountancy information in ensuring that a business thrives

Most entrepreneurships cannot witness their fifth anniversary due to poor management skills. The following statements justifies the role of Accountancy information in ensuring that a business thrives. Which one is NOT?

  1. Accounting information aid the entrepreneur to compare firm performance with those of the competitors and be able to strategize accordingly
  2. Accounting information is very costly to acquire and one cannot rely on it for there are high chances of  losing the business hence an entrepreneur can run the business using past experience
  3. Planning is of paramount importance and accounting information is pivotal for the entrepreneur will be in a position to forecast on future events that can either make the business thrive or close down.
  4. There are unnecessary tax expenses that an entrepreneur pays for his/her business due to ignorance. Accounting information guide one on the extent to which tax liability need to be incorporated by an organization



About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.