Why Bookkeeping and Accounting Matter More Than You Think

Posted by AOLCC | 13th May 2025

Bookkeeping and accounting may not always grab headlines, but they’re the foundation of any successful organization. Without them, businesses couldn’t measure progress, manage cash flow, or plan for the future. These functions keep operations running smoothly and give decision-makers the financial clarity they need.

If you’ve ever wondered why accounting is important or how bookkeeping makes a difference behind the scenes, this blog will help answer those questions and show how to build a future in the field.

What Is the Primary Purpose of Accounting and Bookkeeping?

The core purpose of accounting & bookkeeping is to record, classify, and summarize financial transactions. This information helps businesses:

• Understand their financial health

• Track income and expenses

• Pay taxes correctly and on time

• Comply with legal and regulatory requirements

• Plan for future growth

In short, these tasks keep a business financially organized and compliant, essential for long-term success.

Why Is It Necessary to Have Accounting and Bookkeeping?

While the terms are often used together, bookkeeping and accounting serve slightly different (but complementary) functions. Bookkeeping involves the day-to-day recording of transactions, things like sales, purchases, and payroll. Accounting takes that data and interprets it, creating reports that guide business decisions.

Without accurate records, businesses risk overspending, underreporting income, or failing audits. That’s why these tasks aren’t just administrative, they’re strategic. They provide the data that helps business leaders make informed decisions and avoid costly mistakes.

Bookkeeping and accounting serve slightly different (but complementary) functions.

Five Reasons Why Bookkeeping and Accounting Are Important

1. Financial Clarity
   Clear records allow a business to see where money is coming in and going out. This helps owners make decisions based on facts, not guesses.

2. Legal Compliance
   Businesses are required to keep accurate records for tax filings and audits. Well-maintained books ensure that reporting to agencies like the CRA is accurate and timely.

3. Cash Flow Management
   Tracking expenses and income helps prevent shortfalls. Cash flow issues are one of the leading causes of business failure—strong financial systems help avoid them.

4. Budgeting and Planning
   A business can’t plan for the future without knowing what resources are available. Bookkeeping supports realistic goal-setting and budgeting.

5. Supports Growth and Investment
   Accurate records make it easier to apply for loans, attract investors, or evaluate whether it's time to expand.

Career Opportunities in Accounting and Bookkeeping

There’s never been a better time to enter the field. From small businesses to large corporations, demand for skilled professionals is rising. Many students at AOLCC choose our accounting and payroll administrator program because it offers training for a range of diploma accounting jobs, including:

• Payroll coordinator

• Accounts receivable/payable clerk

• Junior accountant

• Bookkeeping specialist

Curious about how to become a bookkeeper in Canada? You’ll need practical skills in accounting software, financial reporting, payroll processing, and tax preparation. AOLCC BC equips you with the skills, offers flexibility, and provides support at each step of the journey.

The core purpose of accounting & bookkeeping is to manage financial transactions.

Train With Confidence at AOLCC

The accounting and payroll administrator program at AOLCC BC is designed to prepare students for real-world responsibilities in accounting departments, payroll offices, and small business settings. You’ll graduate with:

• A solid foundation in accounting principles

• Hands-on experience with industry-standard software

• Payroll legislation knowledge and reporting skills

• The confidence to start a rewarding career
  
  

Are you looking for a comprehensive accounting and payroll administrator program?

Contact AOLCC for more information.

Frequently Asked Questions

Question: Why is it necessary to have accounting and bookkeeping?

Answer: While the terms are often used together, bookkeeping and accounting serve slightly different (but complementary) functions. Bookkeeping involves the day-to-day recording of transactions, things like sales, purchases, and payroll. Accounting takes that data and interprets it, creating reports that guide business decisions.

Question: What is the primary purpose of accounting and bookkeeping?

Answer: The core purpose of accounting & bookkeeping is to record, classify, and summarize financial transactions.