Significance of bookkeeping:
Bookkeeping is the root of all records keeping. All of your accounts and returns are based on bookkeeping, so it is absolutely crucial to have competent and skillful bookkeeping services for your business. At Businesswise we consistently provide first-rate bookkeeping services and flexible bookkeeping solutions for all sizes of businesses. We encourage businesses to adopt progressive approach and select a state-of-the-art bookkeeping software that will prove economically efficient and more reliable.
Importance of Bookkeeping is paramount for helping you maintain accurate financial records. Albeit, many businesses fail to implement this necessary process. It is not just legal requirement to maintain true and accurate record of business but this practice also benefits you in many ways which include:
We at Businesswise Accountants quest to provide best and efficient bookkeeping services to all our clients, it is worth mentioning that different businesses require different bookkeeping solutions. We aim to tailor and customised the bookkeeping solution for your business. We also train your staff and advise on which bookkeeping solution will best serve your business needs. Our aim is to provide best service but also a service which matches the type of your business.
How it helps in Financial Mapping and analysis?
The significance of bookkeeping increases when it comes to the budget. In a typical budget any organisation tries to map out the income and expenses for next year, incremental budget is formulated on the basis of historic data, hence bookkeeping helps you allocate resources in relevant amount and category for next year. Any budget which doesn’t represent true picture of expectations of a business can hamper its progress. When a data is analysed and interpreted in more useful way then decision making becomes easy and more effective. Remember a business can only move into right direction if it is making informed decisions and this can be possible with our top notch bookkeeping services for all businesses irrespect of your size or industry
What role does bookkeeping play in calculating taxable amount?
An organised record keeping is fundamental to determine the tax liability of a business and eventually will help the director of company to estimate his personal tax obligation as well.
Whether you are doing VAT returns or corporation tax returns, a valid classification of income and expenses is necessary to gauge the amount of tax to be paid or in other cases to be received from HMRC. Any false representation of sales, purchase or expenses can lead to initiation of inquiry from HMRC. At Businesswise Accountants we ensure that you pay only the right amount of tax and
When filling for your self-assessment return it is vital to know the exact income you will receive from your company.
How it helps to fulfil reporting requirements? Internal controls
If you are in a partnership and most partners are only sleeping partners and you want to report them about the health of business, then authentic bookkeeping can help you do accurate reporting. This will not only enhance credibility of your reporting but also helps you secure more investment from investors as well. Similarly banks sometimes ask for how your business is doing if you apply for loan and accurate bookkeeping can help you prepare relevant presentation in very short amount of time. At businesswise Accountants we help you forget all this hassle and let our experts deal with complexities of bookkeeping to secure new funding or simply report to your investors.
To run a successful business, you need to put in place right type of internal controls and bookkeeping will help you in that regards as well. Bookkeeping will assist you in chasing creditors and track any suppliers which aren’t paid on time. Internal controls are important to keep business on track and indicate any issues or deviations from annual and long-term goals for the organisation. A profit and loss statement indicates the profit a business is making and balance sheet determines the assets and liabilities of a business. You can extract the formulated information swiftly only if bookkeeping is done on according to relevant standards.
What are legal obligations:
Running a start-up or running business can involve a lot of hard work and complexities. Not least of which is the maintenance of the company accounts. Not everyone is great with figures, similarly not everyone realises their legal obligations.
Section 386 of the Companies Act 2006 lays down the duty of every company to keep proper accounts, stating:
“(1) Every company must keep adequate accounting records
(3) Accounting records must, in particular, contain—
(a) entries from day to day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place, and
(b) a record of the assets and liabilities of the company. “
Section 387 makes it clear that failure to comply with this regulation is a criminal offence which is punishable with imprisonment.
“(1) If a company fails to comply with any provision of section 386 (duty to keep accounting records), an offence is committed by every officer of the company who is in default…
(3) A person guilty of an offence under this section is liable—
(a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both);…“
The essence of this area of law is that every director of a company is responsible for the company’s accounts. Failure to comply with the law and fulfil this duty can have serious consequences for individual directors. It is therefore important to keep proper accounts, maintaining the books on a daily basis. The act also furthers this duty by requiring these accounts to be kept for a number of years.
“(4) Accounting records that a company is required by section 386 to keep must be preserved by it—
(a) in the case of a private company, for three years from the date on which they are made;
(b) in the case of a public company, for six years from the date on which they are made. ”
In a nutshell failure to compliance with this legal duty as director can lead to serious consequences, but you don’t have to sweat a single drop and contact Businesswise Accountants as we are here to take all the responsibility and let this complex and delicate task deal by our experts. We will not only do perform this operation on your behalf but also advise you to select suitable software for your business.
It helps you to have peace of mind:
Professional efficient bookkeeping can make all your stake holders happy. For example, banks will be happy that they are being provided timely and accurate information, HMRC will be happy to receive comprehensive and relevant information. Similarly, it will help you manage your business efficiently and steer it into right direction. As an entrepreneur you will be independent of all bookkeeping worries and focus on strategy of your business and leave all bookkeeping related affairs to our experts.
We are a firm of financial accountants, our mission is complete customer satisfaction and continuous improvement in our services to match the dynamic environment of accountancy services, we build our relationship by providing services with professional integrity and slick as whistle operations. We thrive on passion, interaction and solution. We approach each and every client with same zeal, and pride ourselves with best of communication and interaction measures put in place. We ensure that combination of our skills and up to date knowledge does help your business achieve best solution for accounting problems. Apart from traditional accounting solutions and services we organize regular business development workshops to help all businesses interact with each other and share different ideas and their key to success. We respect the conventional accounting practices but aim to blend those with contemporary software solutions to present best services. We are pragmatic , enthusiastic, visionary, progressive and innovative accountancy practice.