Accounting is the process of recording transactions in an organised manner. It is the method through which flow of money is kept track of in a Business, in order to calculate whether a Business is generating profits or losses and at what percent.
Creating a fair balance of accounts and empowering businesses to take reliable financial decisions, account payables and account receivables are the most significant and critical processes in any productivity oriented organization. Additionally, with systematic accounts receivable and payable operations in place, you can efficiently manage the working capital and identify the key areas for fund savings.
Budget your expenses : Accounting helps you to create budgets to limit expenses and save money for key investments and expansions.
Predicting Earnings : With accounting, it is very easy to reduce how much a Business has generated in a particular period of time. Monthly, quarterly and annual reports can be analysed easily and expenses can be tracked easily.
Direct money towards wise investments : Accounting let’s you know how much money you’ve got to spare and thus helps you make better finance decisions.
Limit expenses : Unwanted expenses that may become financial liabilities can be tracked down and corrected immediately with accounting.
Monitors debts or losses early on : With accounting, one can watch if a Business might make a loss if there isn’t enough money for payments. You can even prevent such losses by periodically analysing your accounts.
Record for filing Taxes : Accounting let’s you file Taxes easily by providing you the correct numbers. Also helps you avoid trouble in case of a sudden government intervention or audit. If you’re applying for a loan, you need detailed financial records. Failing to provide accurate accounts to Tax reviewers may welcome an uninvited Tax audit.