There are several reasons for opening branch offices such as in order to market the product and to counter strike the movement of the competitor and to snatch the market share. Whatever is the reason, the head office is always interested in knowing the performance of the branch office and this can only be assessed using branch accounting.
Main Purpose/ Objectives
to know about the cash position of the branch,
to know the inventory level at the branch,
to know profit and loss of the branch,
to evaluate the performance of staff at the branch,
to calculate the commission amount payable to the sales staff on making cash sales and recovering against credit sales.