Any business analyst will suggest to you to keep your accounting neat and clean for proper business management. Here we present to you six of the many benefits of keeping proper accounting for your business.
1.Helps you to keep your business information organized.
In short, we can say that accounting helps you to know the current status of your business. It helps to let you know how much money you need to collect from the market and at the same time it shows you how much is your liability in terms of creditors and loans. It presents a clear picture of the assets the company is holding and the present book value of the same. In other words, it helps you to know at a particular time whether the company is running at a profit or loss.
2. Helps you to file Proper Tax-returns.
You cannot file your tax-returns accurately without proper accounting records. As a matter of fact, if you by chance get a tax-return enquiry from the relevant government department and you do not have proper records to back up the same then you are in for some serious trouble. And all this can be avoided by proper bookkeeping.
3.Helps in Decision Making.
Proper accounting is your guide for better business decisions. Decisions are always based on the analysis of business data. Accounting will present you with the figures whereby you can come to know the exact pitfalls in your company. It will help you to analyze your expenses against your revenues. You will come to know how each expense is contributing to enhancing the revenues of the company. In other words, you come to know where you are overspending and where you are underspending.
4.Helps you to become more responsible and more accountable.
With proper accounting records its easy to track the performance of the employees. Also, when we are able to see the actual figures and its implication on paper, we become more accountable and more responsible. For example, a sudden hike in the telephone bills might be an indication that one or more of the staff are too much on the telephone. Based on these findings we can investigate whether the hike is justified or not.
5.Helps to measure new strategies.
With the presence of actual figures, accounting not only helps in making guided decisions but it also helps to measure the impact of those decisions on your business. For example, you took a decision to hire 2 more salesperson to your sales team. You can always compare the before and after figures of this decision and come to know whether that decision is helping the company to move up or pushing it into losses.
6.Helps the company to getting funding and loans.
Investors or banks will always check your accounting statements before they fund you. Without proper accounting your chances of getting funded are relatively dim.
So, you see if you want success in business, you don’t have a choice but to keep proper accounting.
If you are convinced about the importance of accounting, we would be glad to help.
We at Smartplus Consulting, have Accounting Management packages starting from just Aed. 1500.00 for service-oriented business (without Inventory) and packages starting from Aed. 2150.00 for small trading firms with inventory management.
Do not delay your important decisions. Get in touch today and we would love to help.