Whatever size your business is, you will need to keep accounting records and regularly produce accounts. It is of course necessary in order to keep H M Revenue & Customs happy that you are complying with the law. For limited companies, the accounts also need to be filed with Companies House. However, the most important reason to keep your accounting records up to date is so that you know how profitable your business is at any time.
Accountancy firms can take anything and produce a set of beautifully produced accounts. However, if the records you supply are badly kept, the accounts will not be completely accurate. This means that any analysis of them will be of limited use and thus business decisions taken will not be fully informed ones.
One development which helps businesses keep up to date with their accounting is the development of online accounting systems and their integration with existing accountancy software. Most small or medium sized businesses have someone who has the specific task of dealing with the accountancy functions. These include recording of all invoices received and issued as well as the settlement of these whether paid in cash or via the bank. It is not economical to have a fully qualified accountant in this position. That person, therefore, will liaise with the accountant to ensure that all information has been received and resolve any queries.
It simplifies matters considerably when the records can be supplied by email to an online accountant who is then able to produce reports as often as required by the businesses proprietor.
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Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.