For successful businessmen, a strong control on finances is of critical value. A weak control often leads to the poor understanding of the company’s performance and in some cases business failure. In most of the cases, small to medium enterprises fail to keep good accounting records which often lead to the business being managed by others including non-qualified staff, the bank, and the creditors.
If reliable information is readily available, control of the business means the owners are making decisions in full knowledge of the likely financial outcome. Also, quite often financial information is needed by external parties, like banks. If this is readily available it makes the company look efficient and saves significant time and money.
We understand the accountancy function as an ongoing process and not just the end of the year function. Practically, accounts need to be kept in such a way that it depicts the true picture of the business operations. The minimum requirement for an active accounts department should be to produce monthly management accounts. The accounts should be constructed in such a way that they reflect the total revenue generated, direct costs associated with the revenue generations and the overheads consumed during a specific reporting period.
Bookkeeping is the backbone of an accounting function and it has to be accurate to ensure the accuracy of the reports generated. Too often businesses treat this discipline as a means to understand their sales and supplier ledgers only, ignoring other information, which the accounts need to provide.
All this has become a lot easier today with the availability of accounting software packages. However, it is important that people involved in the process are trained and able to produce the correct financial information.
We offer a bookkeeping service and can work with the internal staff to complement the existin
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