The recording of financial transactions is bookkeeping, whereas, accounting is interpreting, classifying, analysing, reporting, and summarizing the financial data. A maintained accounting & bookkeeping system helps a business to reduce accounting costs and analyze its financial stability and growth.
Accounting is the systematic process of recording, analyzing and interpreting the financial transactions. It is the responsibility of every business – whether large or small to furnish their accounting records to the Income Tax Department. Usually, start-ups ignore and after few years, they have to face problems. To avoid problems like raid and fines, it is always good to maintain your financial records and furnish details to the government agencies.
An effective accounting system in place helps startups and established companies in:
Budgeting helps organizations in effectively controlling the income and expenditure of the company while monitoring the managerial policies and goals of the business. It provides a disciplined approach to developing strategies; directing capital and other resources into profitable channels.
Accounting system acts as a yardstick in measuring the performance of the business with respect to key metrics like net profit, sales growth,
Regular tracking of the money that comes into the business helps in predicting the trends, paying to staff and suppliers, covering debts, etc.
While approaching potential investors, creditors, banks or borrowers, the financial statements and other reports serve as financial scorecards of the company. Investors will get a better sense of the financial health of the business which includes the net worth, debts, savings, amount spent on fixed expenses. In addition, they will get to know the solvency, creditworthiness, liquidy, stocks and bond issuers of the business.
Mandatory by law:
In India, as the Registrar of Companies demands a strict record of
income tax payments at the end of the year, without maintaining accounts
companies may end up paying tax in excess.
The top three reasons businesses outsource are cost savings, absence of local professionals with required talent, and ability to leverage an efficient, established technological infrastructure. Studies indicate that a company can save approximately 40% on operational costs by outsourcing. Outsourcing also provides businesses with access to the same secure, technological platforms used by larger companies without needing to invest heavily themselves or worry about the associated information security requirements.
Companies have the ability to adjust the level of support or services required, based on their financial resources. Whether you require full-time expertise in a specific area or require our services for only a few hours monthly on a project basis, Analytix allows you to adjust the level of support your business needs when you need it, including support for online accounting solutions and cloud based accounting solutions.
End-to-end outsourcing companies offer a range of services and instant access to individuals with the talent and skill-sets that can be leveraged at any time to support the changing accounting and bookkeeping needs of growing companies.
Most small businesses lack the time and resources to develop business continuity plans. Working with a reliable outsourcing company mitigates the risks associated with losing internal staff, as the function and associated business knowledge are not reliant on a single employee.
Our main aim is to help those entrepreneurs and businessmen’s legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.
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