Accounting is a technique that is responsible for registering, classifying and summarising commercial operations; the information obtained from these processes allows knowing the stability and solvency of the company. An important aspect in the manufacture of a product or service is the costs, which is why cost accounting plays a vital role within the company because it evaluates the administrative and managerial work, where the income is compared with the costs that have been projected, through the use of some cost models such as total cost, direct cost and activity-based accounting, cost information can be classified into different categories where fixed and variable costs stand out mainly.
Accounting books, the step before accounting records
To understand what accounting records are, you must go one step further and define what accounting books are since these are a transcendental part of the process of making records.
Accounting books are documents in which the financial and economic information of a company is recorded, either physically or digitally.
The accounting books must include all operations that were carried out during a certain period of time.
Therefore, its main objective is to keep the accounting records of the company in an orderly and chronological manner.
Another of the great benefits of the accounting books is that they allow extracting specific financial information from the company, which helps to know the general balances of the accounting records
That is why it is recommended to save and keep the accounting books of a company for 7 years or more.
What are accounting records?
The set of accounting records is used as the basis for calculating the results of a company’s activities and its balance sheet.
As with the accounting books, the accounting records not only serve to keep track of the company’s financial statements but also serve as support and backup before the ATO in the event of an audit or inspection.
Objectives of Accounting
Perhaps with the previous concept, it has become a little clear what the objective of accounting is. But so that there are no doubts, it is better that you read these general objectives so that you can learn everything you need to know about accounting.
1. Provide information on financial facts
2. Know results in a specific way to know if the processes of a company are going as planned
3. Classify all the operations registered in a business so that entrepreneurs can make much clearer and more effective decisions
4. That entrepreneurs or businesses can have, when they need it, ordered and updated information on the economic movement of their company
5. Establish in monetary terms the information of the companies, including assets, income, expenses and equity.
Benefits of keeping accounts
In itself, accounting helps you have better control over your business operations, how much money comes in, how much goes out, what your profits are and what your losses are.
Keep in mind that keeping your business accounts will allow you to:
1. Keep your inventory in order and avoid product loss.
2. Predict what the results of your business will be in the future.
3. Make strategic decisions to be able to solve any problem that endangers your finances.
4. Organise all your expenses, such as purchases from suppliers, payment of services, rents, etc.
5. Know the general balance of your business, which is nothing more than a balance between your income and expenses.
Finally, now that you know how accounting benefits companies, it is important to tell you that there are those who prefer to put aside manual accounting and opt for using accounting software since there are many advantages that you have when using an accounting system.
With accounting services, you can make intelligent reports, manage inventories, keep an order of income and expenses, and know the general balance of your business.
Why accounting advice is essential?
Today having reliable accounting advice is essential regardless of the size of the company or the sector of activity. A good accounting consultant can help you save money for your company and avoid future problems. In addition to also creating, maintaining and managing a general accounting plan without problems.
By correctly keeping company accounts, requesting tax deductions and receiving advice on flexible salary compensation, taxes, tax advice and other services to which you are entitled, saving money is a simple consequence of the above.
All taxpayers must comply with tax obligations, but there is a risk of not complying with the regulations due to ignorance or excessive work.
Benefits of hiring accounting outsourcing for your company
Many companies choose to outsource their accounting services. An accounting outsourcing represents a management tool that allows companies to focus on their core business and put the accounting aspects of their companies in the hands of experts.
1. Improve profitability
This is due in large part to the savings in costs such as salaries, social benefits and mitigating occupational risks with the personnel in this area, not counting the work space, the costs of the technology necessary to improve processes, etc.
2. Reduction of errors in accounting processes
Companies usually present errors or deficiencies in the accounting area when they carry out this process internally. In this context, accounting outsourcing emerges as a strategic alternative capable of increasing the performance of these businesses and eliminating errors due to the controls that are applied during the process of generating accounting information and financial statements.
By contracting the accounting outsourcing service, companies tend to perceive the improvement of internal controls, as well as levels of transparency, as well as the generation of reasonable and timely financial statements in order to deliver to the Company’s Administration tools that allow you to make decisions in a timely manner.
3. Allows you to work with specialised professionals
One of the great advantages of accounting outsourcing is that it allows a company to access the services of a wide range of highly experienced professionals.
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