To suggest that bookkeeping plays a crucial role in any enterprise would be a gross understatement. A company whose owner doesn’t take financial management seriously is doomed to fail. A vital part of every successful small business is accurate bookkeeping. Recordkeeping inefficiency has cost many Indian enterprises their livelihood or even closure. It is here to inform you if you’ve never thought about the role bookkeeping plays in facilitating efficient operations.
Constant Dealings –
A bookkeeper entering daily bank transactions by hand or (ideally) one of the numerous excellent accounting software alternatives available focusing on India-based small enterprises will get you to the same place. The bottom line is something you, as a business owner, need to keep an eye on throughout the day. Suppose you don’t have an accounting system that provides a snapshot of your company’s financial health. In that case, you risk spending money that isn’t available and incurring penalties in the form of overdraft fees, excessive interest rates, or stern warnings from your banker. “GATWICK ACCOUNTANT” (www.gatwickaccountant.com) offers small business bookkeeping and payroll services.
Receivables and Billings –
It’s unusual for a company to function only on a cash-and-carry basis nowadays. The practice of “bill me later” payments is here to stay. While some percentage of invoices may be written off as uncollectible, it is still necessary to have a system in place that automates the invoicing and accounts receivable management operations. Think about it. Due to this inefficiency, money is wasted on every bill that isn’t sent out. If losses mount, it may become difficult to keep going.
Budgeted Funds Due –
Contrasting with accounts receivable are accounts payable, which are probably slightly less crucial. Accounts payable refers to money owed to suppliers of goods and services and fixed costs like rent, utilities, internet access, and insurance.
There may be a financial incentive to make a payment on debt as soon as possible, say within ten days. Some vendors may extend a small discount for prompt payments, often about 10%. You could lose out on substantial savings if you don’t have a system to track which costs need to be paid.
Getting ready for the accountant –
If you were wondering, bookkeeping and accounting are two entirely different fields. Accountants are responsible for analyzing financial data, recommending improvement recommendations, and filing business tax returns. The quality of an accountant’s final report is directly proportional to the accuracy of the bookkeeper’s records.
Final Words…!!!
When you’re swamped with making day-to-day decisions, it might be easy to put off establishing a reliable system for recording company activity. If you want reliable small business bookkeeping and payroll services contact to “GATWICK ACCOUNTANT” (www.gatwickaccountant.com).
