Features and Importance of Book Keeping

Book keeping is the process of recording, analysing and interpreting the financial transactions of a business.
Features of Outsourced Book keeping services:
  • Billing for goods sold or services.
  • Recording receipts from customers.
  • Verifying and recording invoices from suppliers.
  • Paying suppliers.
  • Processing employees' pay and the related governmental reports.
  • Monitoring individual accounts receivable.
  • Recording depreciation and other adjusting entries.
  • Providing financial reports.
Importance of Book Keeping:
·         Better financial analysis and management:  Cash flow is vital for every business and it is important to make sure it is being managed correctly. Book keeping can systemise these transactions and keep everything up-to-date, including invoices and payments.
·         Fulfillment of Tax Obligations: Book keeping helps to keep track of any information and documents in order to accomplish annual taxes.
·         Reporting to Investors is Easy: Book keeping makes it easy to demonstrate data to investors in the form of charts, graphs and lists.
·         Business Planning is made Easy: Book keeping provides Balance Sheets and Profit & Loss information so that it is easy to check whether the company is on the right track financially; from there it is easier to start making more business plans.
·         Proper Record Keeping as Required by Law: Book keeping keeps record keeping properly organized and makes retrieving information easy once the audit time comes.


Comments

Post a Comment

Popular posts from this blog

Why Tax Planning is Important?

Tax planning includes the analysis of a financial situation or planned transactions from a (direct or indirect) tax perspective. The purpose of tax planning is normally to ensure tax efficiency and compliance, so that all the elements in a transaction are working together in a tax efficient manner, reducing the overall tax liability and ensuring that every action taken is compliant with the relevant rules and policies under which the transaction is conducted. International Tax Planning: - Transactions of a cross-border nature are at risk of attracting double taxation, which may make such transactions less efficient and can sometimes limit cross-border trade and other activities. Tax planning helps in estimating how much tax a company will have to pay. This is done by making estimations and comparing it to the previous year’s data. For a business, regular tax planning and paying of tax will help save them from complexities of the legal authorities of the government. Thus,...
Read more

Business Registrations – Legal Compliance

When you are starting a new business it's important to find out what registrations and licenses apply to your business. Having the correct licenses and registrations is fundamental to your business. They allow you to operate without fear of closure from non-compliance and are the foundation to successful business. ACN (Australian Company Number):  The Australian Company Number (ACN) is a nine digit number with the last digit being a check digit calculated using a modified modulus 10 calculations. ABN (Australian Business Number):  An Australian Business Number (ABN) is a unique 11 digit number that identifies your business to the government and community. An ABN doesn't replace your tax file number, but it is used for various tax and other business purposes. GST (Goods and Service Tax): Goods and services tax, often known as GST, is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. GST applies to most Australian busin...
Read more

SUPERANNUATION

Superannuation in Australia is the arrangements put in place by the Government to enable people to accumulate funds to provide them with income in retirement. Superannuation in Australia is partly compulsory, and is further encouraged by the government and supported with tax benefits. The government has set minimum standards for contributions for employees as well as for the management of superannuation funds. It is compulsory for employers to make superannuation contributions for their employees on top of the employees' wages and salaries. SMSF property investment  SMSF property investment has gained considerable momentum since the amendment of borrowing provisions to allow for the purchase of residential real estate. The ability to obtain a limited recourse loan to buy income-producing property in a favorably low tax environment, has affected a rapidly emerging incidence of direct property investment within SMS...
Read more