When people hear the word accounting, the first and foremost question they have in mind is accounting all about maintaining records. This is true to a certain extent because there are different kinds of financial records that have to be recorded to value a business.
But in today’s times, it can be seen that most of the companies are missing out on record keeping and this turns out to be very difficult for the business owners to understand the curve of business growth. There are a lot of benefits of hiring an accountant to keep the track of different business-related transactions. One of the cheapest and easiest ways to maintain transactions record is to have the software. To answer the question is accounting all about maintaining records, one has to understand the importance of the following concepts.
- Helps to establish bank accounts
The different records of the business could be easily tracked only when it is linked to a separate bank account. When you are having the same account for different purposes of a business, then it becomes very hard to maintain the list of transactions. This is one of the important aspects of maintaining records.
- Don’t use cash
It is always suggested to go for digital transactions as maintaining records with liquid cash cannot be easily documented. The digital transaction comes along with the proper proof that can be documented for future references. One could easily forget how and where the cash was spent and the handwritten documentation is mostly not kept in many places in terms of calculating the debit or credit details. Whereas if you have the list of transactions in digital format, then credit and debit details can be easily tracked and recorded If you have to use an ATM to withdraw cash, then it is also recommended to document the ATM receipt.
- Tax obligations
Tax filing and understanding all of the tax obligations of your business is very much important for you to file the taxation. If you have a significant number of employees in your organization, then you will have to pay the payroll tax. This particular taxation is also called pay as you earn and you need to pay this every month. Making sure that your business falls in line with the different rules and regulations and compliance auditing is also necessary. The Essex Accountant works on compliance as well.
If in case, you are not in a position to hire a bookkeeper or an Accountant in Essex, at least go for accounting software that provides features of an online bookkeeping system. From the specifications described, one could easily see that accounting and record-keeping is a huge umbrella term, and there is a lot of work that goes behind running their business efficiently.