Book Keeping and Accountancy

Regular recording of business transactions is one of the essential parts of a business. From having an income of INR 1 to an expense of thousand rupees, tracking every transaction ensures transparency in the business. The tallied account helps you in smooth operations of the business. Bookkeeping and accounting is one such activity that tracks every single transaction made in a business. Bookkeeping and accounting are two different terms. 

The process of tracking the financial affairs in a business is known as bookkeeping. On the other hand, the preparation of the financial accounts of a business is known as Accounting. Accounting is a mandatory process for every small and large business. However, sole proprietorships are exempted. Certain exceptions do not make them bound to keep the records of account.

But still, it would be best to keep your accounts up-to-date. It helps you avoid financial stresses. Knowledge of expertise in accounting is even essential in the case of small businesses. It helps all the businesses to make sure the accounts are as per the accounting standards and compliances. Thus, whether you are home based-business or an industrialist Bookkeeping and accounting is an essential requirement for you. 

To measure Income and expenditure 

If you want smoothness and transparency in your business, you should track the accounts. Every individual firm or organization in India must know their Income and expenditure during a particular time. Bookkeeping and Accounting in the business help you record Income and expenditure. Thus, you can plan and strategize the financial resources and use them accordingly. 

Regular access to operational information

The updated records about the account help a business to know the operational information of the business. Although the superiors are not directly associated with all the transactions in a business, bookkeeping and accounting help them to keep an eye on every transaction of the business. It helps in the proper management of the business. 

Attracts lender/shareholder/lender with appropriate financials

Any investor will only invest in a business if it is financially strong. Thus before lending, the investors will analyze the business and its financial conditions during the past few years. So, if you are approaching any lender, you should make sure that your books of account are up-to-date and have no inaccuracy, as inaccuracy may retain the lenders from investing in your business. 

Timely reconciliation that helps in better decision

Bookkeeping and accounting come with periodic reconciliation of data. Monthly of yearly reconciliation helps you in determining the benefactor aspects of the business. Thus, you can make futuristic decisions by analyzing the profit and loss of the business. 

Always prepared to furnish data for timely compliance

Every business registered in India needs to comply with all the compliances. And some compliance requires the records of your accounts. Accounting in business helps you in extracting data. Thus, you can show all these data while filing your income tax returns to meet all the compliances.