It has become mandatory to keep a regular track of business transactions. From earning a penny to spending a penny, recording ensures transparent business operations by tallied account. The accounting and bookkeeping services can help in tracking every single transaction undertaken in past from learned decision of future.
The part of recording the financial affairs of the business is called bookkeeping, whereas accounting is the preparation of financial accounts. It is necessary to do accounting for small business, to avoid financial muddles. Expertise knowledge of accounting is essential even in the case of accounting for small businesses, to ensure the books are maintained as per the accounting standards. Maintenance of accounts is as an essential requirement for a home run business as it is to an industrialist.
To gauge the income and expenditure of the business
To ensure a smooth and transparent business, every individual, firm or a corporation is required to know about the income and expenditure incurred or generated. This helps them to plan and strategize their financial resources and exploit them accordingly.
Timely access to operational information
Up to date records provide access to operational information to the management. Although business owner(s) or managers are not directly associated with all transactions, accounting and bookkeeping help them to keep an eye on all the transactions from time to time.
Regular reconciliation rationalise decisions
Accounting comes with the reconciliation of data periodically. Monthly or quarterly reconciliation helps management to analyze the beneficial or detrimental aspects of the business. Hence, futuristic decisions can be rationalized with the analysis of loss and profit.
Attract investors with accurate financials
Investing in any business would be followed only after complete analysis of business and its financial condition. While approaching investors, you need to make sure that your books of accounts are up-to-date and accurate. Inconsistency may refrain investors to jump into the business.
Ready to furnish data for timely compliance
Accounting makes it easy to extract data and submit it on time for regular return filing, compliance or scrutiny for the businesses.
Copy of PAN Card of the business entity
Certificate of Incorporation, MoA – AoA/ LLP Agreement / Partnership Deed
Bank Statement of current account in name of business
Bank Statement of Partners
Bank statement of saving account of partners is also required
Certificate of Government registration, such as GST
Invoices and Bills
Sales invoices and expense bills for concerned accounting period
Details of Assets
Invoices of sale or purchase of assets or pending loans
Expenses made for company or LLP registration by promoters
Details of Cash transactions
All the transactions incurred in cash needs to be booked