The 8 Essential roles of Bookkeeping Services for small business
Keeping books of account is an integral part of running a business. It meets the legal obligation to monitor mandatory registers, but also helps to monitor results, analyze performance and manage the company. Whether the bookkeeping services is done by an in-house accountant or a firm, it is a valuable tool in helping to make decisions that affect the future of the business.
It keeps track of the current and past financial situation and allows comparisons to be made
The recording of accounting entries and bank reconciliations give a fair and real-time view of the performance and cash flow of the company. The manager can compare the current state of the company with past situations, measure and analyze the variances with the estimated budget.
Keeping accounting books is mandatory for a business
Bookkeeping is a task that many business owners hate doing, and is often rushed, left to the last minute, or carried out late at night after a hard day at the office or on site. It’s time like that when the mistakes are made, and incorrect bookkeeping can expose owners to substantial fines if discovered by a Tax Office audit.
Bookkeeping in accounting allows you to plan the financial situation and make forecasts
It is by following your accounts closely that you are able to know the precise financial situation of the company and to make forecasts. Contrary to popular belief, rigorous monitoring is not necessary only in times of crisis. The development of an activity is a sensitive situation which generates a need for working capital and also requires daily monitoring.
It is the best way to monitor and control expenditure items
It makes it possible to record accounting entries and analyze expenses in real time allows you to know your production costs, avoid unnecessary expenses and slippages without having the time to significantly affect profitability.
Bookkeeping allows you to track inventories, invoicing and customer receivables
It is with a rigorous recording of accounting data that we can monitor and compare stocks, invoicing, verify that all products and services sold have been invoiced, and control the outstanding amount owed by each customer.
It helps to optimize the management of the company
In a competitive economy, rigorous account monitoring allows you to make the right decisions without wasting time, maximize profits and increase the company's chances of survival.
Bookkeeping decreases the risk of errors by structuring income and expenses
Self-employed workers and small businesses that keep books structure their expenses and income, making fewer mistakes when it comes to over-reporting or not reporting.
It saves time in the event of an accounting check
Impeccable bookkeeping, well-filed books and documents save time in the event of an audit and avoid remedial action related to a faulty bookkeeping or the inability to produce a document. Keeping accounting books meets an obligation, but is also a valuable management tool. A record and a rigorous follow-up of the accounts allow the manager to optimize the management of his company by making informed decisions at the right time.
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