No matter how proficient you’re at producing a product, bestowing services to your patrons, or marketing your merchandise, the revenue you earn will slip through your fingers if you’re not able to aptly accumulate, record, save and spend it smartly.
There is no denying the fact that hiring a professional accountant is certainly the most intelligent option for many businesses. Especially, when you’re aware of the fact that blunders associated with tax and income can be costly. However, it’s also important to understand that your hired firm couldn’t deliver optimum results if not provided with precise and timely accounting information.
Your financial reports generally involve your balance sheet, income statement, and cash flow statement. If your business isn’t generating these reports on timely basis, you can bump into troubles with administrative authorities, financial institutions and lenders.
To achieve maximum results, your accountant or tax preparer will require having all the accurate records within reach ahead of time – ideally arranged and coordinated.
One of the basic responsibilities of an accounting firm is to inspect the general ledger of a business and meet the compliance needed by a regulatory authority. It is therefore essential that the information and records received by the accounting firm is correct and shows a real reflection of the business affairs. If the business ledger included inaccurate data, and the accountant adds it to the file returns, severe problems may arise in the form of fines and penalties. Some instances where this happens frequently are in the Sales tax and payroll space. Flawed reporting could result in the business being inspected by the state/local regulatory authorities.
Providing your accounting firm with accurate financial information allows the business owners and managers to have mental freedom and peacefulness.
It Gives Your Accounting Firm a Crystal-clear Financial Picture of Your Business
Solid accounting practices give your accounting firm a true financial picture of your business. It helps them assess how well the company is doing year-over-year and decide whether things are developing or getting unfavorable.
It Helps Your Accountant Better Manage Your Accounts
Timely bookkeeping helps your accounting firm better understand your payables and receivables. It gives them great insight on how your business is performing. Moreover, they can also correlate one accounting period with another to analyze the progress.
Get Answers to the Most Important Financial Questions
Coordinated, systemized accounting information allows accountants to answer the most significant financial questions swiftly and precisely. What are your bestselling wares? Who are your best clients? Without updated accounts, the interpretation to these critical questions can remain a mystery.
Makes it Convenient to Borrow
Good accounting practices exhibits financial institutions and lenders that a business is trustworthy and reputable. A detailed, organized financial image that incorporates tax returns, balance sheets, profit and loss statements are what banks and investors look for while lending money.
Makes it Easy to Locate Relevant Data and Documents Promptly
Through organized financial data, your accounting firm can easily find relevant information and documents as needed. Generating invoices, producing estimates and making quotations can be relatively easy if your firm has all the important information handy.
Helps Your Accountant Plan Beforehand for Taxes and Other Payables
Effective bookkeeping also guarantees that you always pay your taxes and liabilities on time. Plus, it also helps your accounting firm check the veracity of your tax position.
It makes Filing your Tax Return Easier and Also Saves you Money
By providing your firm with accurate, timely and updated accounting information, you help it file your tax return without any trouble. The best bit? By the time a deadline arrives everything will be organized, filed and in good shape. By doing so will also help your accountant bring in capital allowances or tax reliefs for you.
So, it’s pretty clear that all businesses need to work on their accounting systems in order to dispatch error-free, accurate information to their accounting firms. But how?
Whether you own a small-scale business or are endowed with a large-sized company, an established accounting system is a MUST.
E-accounting is an ultimate solution…
Thanks to the innovation in accounting technology, businesses today are no longer required to depend on manual data handling and computing. The integration of automation, mobile accounting, OCR technology and cloud computing in accounting procedures has made the field of finance a whole lot better and reliable than ever before.
Installing & Implementing an Accounting System Software
Let’s admit it. Accounting software is definitely more productive than your conventional homemade statements and spreadsheets. Some alternatives are more practical than others, while some are tailor-made and cater to the needs of a specific line of work such as manufacturing, service sector or retail. What you need to do is to discuss the selection of software with your accounting firm. Your accountant may require you to implement a program that is in sync with the accounting system it has currently in use.
When it comes to the cloud-based accounting software, Xero certainly tops the list. The product lands with amazing features along with great customer support. Some of the key features include invoicing, time and expense tracking and contact management. The program includes bank reconciliation, double-entry accounting and 65 reports. Moreover, it can work with more than 500 integrations.
Receipt-bank is another great tool that adds value for your clientele by helping you spend less time on manual tasks. This program is loaded with innumerable practical features including automated client reminders, adjustable data export and safe cloud storage. The software smoothly integrates with other major cloud-based accounting programs and helps in building an end-to-end solution to the clients.
It’s never too late to get your finances and records under control. If you haven’t picked one for your business until now, it’s high time to invest in one for maximum results and productivity – Your bank account and accounting firm will thank you.