Accounting services providers help you regularly update your business' books. It is a critical task. Their analysis of the latest financial data of your company can reveal insights that can either help you take steps to avert a disaster or capitalise on an opportunity.
What are Accounting Services?
Your provider task a bookkeeper on their team to file your business' invoices, receipts and financial documents chronologically. They track your invoices, update the general ledger, and help with tax returns.
They also manage payroll records and account reconciliation, including bank reconciliation. Whenever the need arises, they prepare financial statements for the management.
As a tool, accounting for business growth is too useful to ignore. It simplifies the business decisions for you. It helps in income and expense tracking. You can also use it to give your investors, shareholders, and management a clear picture of its financial status.
Importance of Accounting for Business Growth
Prepare Financial Statements
Are financial statements useful? What do they tell you about your business?
From time to time, you should ask your accounting services provider to prepare critical financial statements.
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An income statement gives detailed information about your business's profit and loss.
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With a balance sheet, you get to know its financial status on a particular date.
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The cash flow statement reports the business' earnings and expenses over time.
Cash flow statements help you correlate and make sense of the income statement and balance sheet data.
Financial Insights for Business Decisions
It is a must for every business to update its books regularly. These records reflect its financial health. The latest records lead to accurate documents. An analysis of these records gives you deep financial insights into a business' current financial state.
Actionable insights help you in data-driven decision-making about the use of resources, allocation of funds, and elimination of unnecessary expenses. And to ensure your business' competitiveness.
An experienced accounting services provider can help leverage your accounting for business growth by tracking expenses, gross margin, and debt and comparing your latest and past financial records.
Statutory Compliance
Accounting services assist in implementing the right accounting processes and procedures. They take care of business liabilities like GST/VAT/Sales tax, corporate income tax, provident funds, deductions and levies. It helps in complying with the statutory regulations in force.
Prepare Budget
The latest financial records help in preparing the budget for your business. It assists in planning the economic path for your business. Accounting services use past data to know the business trends and formulate estimates and projections for the next financial year. And only consistent accounting can give you access to such valuable data.
Filing of Financial Statements
At the end of each financial year, businesses must file their annual financial statements to their regulating authority or the Company Registrar. You also need to be prompt with filing your direct and indirect taxes. Your accounting services provider provides valuable services and advice to help you through these tasks.
Annual General Meeting
You need to prepare and table the financial statements for the annual general meeting of your company. The information helps them understand where the company is going financially and make valuable suggestions.
Your accounting services provider can use the latest accounting software to prepare these documents quickly and accurately. These documents are valuable to the shareholders and other investors in making investment decisions.
As you can see, the right accounting services provider can do wonders for you. If you are looking to replace your existing provider or hire one for the first time, contact us at contact@grogroup.co.in to know our services.
