Accounting and Bookkeeping for Your Business

By Nathan Ciencia

Being engaged in business is not a simple task. You must take care of a lot of things to keep the business

going and the money flowing. However, many do not become successful at their attempts to put up a

business because of loss of track of their finances and cashflows.

If you intend to stay in business for a long time, you need to know and understand your financial

situation.

Taxes

Compliance to the law regarding taxes will keep you out of trouble. Keeping track of all your income and

expenses is necessary for you to be able to ensure that necessary tax payments are correctly made.

Taking Control of Your Business

Using financial data is one of the best ways for one to achieve better control of their business. Monthly

reports will show you how good or bad your business has been performing and in what particular area is

improvement required. Things to watch out for are:

Overheads - to see if costs are under your control

Profit margins - to know if your profits are within the margins

Turnover - to see if it is high enough

Net profit - to see if you are actually making profits

Cashflow

Without cash, your business can succumb. Cash is needed to run your business no matter how much

profit you are making on paper. If have not enough cash, your creditors might try to have your business

liquidated.

Reporting

Varying types of reports and submissions need to be submitted to the authorities, as per the law

requires. Cashflow, balance sheet, and annual profit and loss statement are examples of these reports.

Self-employed or small businesses still need to make annual reports, though they are not that

burdensome compared to large enterprises and corporations.

A Good Accounting System

The importance of a good accounting system is something a business owner (or an aspiring business

owner) must know of because it can define if your business will stand the test of time. Putting up a good

accounting system does not have to be all too complicated. Computers do a great job in making

bookkeeping easier than before when they used to keep handwritten records.

One must also choose the best accounting softwares to use (most CPAs are aware of this and know the

right software to use). A good accountant uses the right tools and employs the necessary skills to be

able to perform his duties well.

Hiring a Chartered Accountant is a very wise step to make if you would want convenience, great profits

in the long run, and staying power for your business. You will have more time to focus on other aspects

of your business and be at ease with leaving accounting tasks to a professional.

Accounting and tax compliance services M Hume & Son Ltd – Accountants For Surrey