What is Bookkeeping?
Bookkeeping is a systematic record of financial transactions in the appropriate books of records. What it means is, whether you make a sale or purchase something, a record will be maintained of the transaction. This record will allow you to easily keep a track of all your transactions and will help you analyse how you can cut costs and reduce taxes. Bookkeeping is a function of the accounts department of a business. However, many small businesses do not have fully staffed and efficient accounting departments and require the help of external bookkeeping services.
Why should you Maintain Books of Accounts?
It is a Statutory Requirement for all businesses except for Sole Proprietorship.
Helps you review your performance and take steps to improve.
Maintaining books of accounts helps you when you need funding from investors.
Bookkeeping services are necessary for all businesses to ensure accurate operational / financial information. Such information is required by Management, Regulators, and Investors. Also, it is a legal requirement for any business to maintain an appropriate book of accounts to ensure that all relevant taxes are paid and tax filings are made on time.
Bookkeeping is the process of recording financial transactions of a business in an accounting system and the creation of reports. However, many small businesses do not have complete accounting departments and require external bookkeeping services. Anand corporate consultants can provide your business with bookkeeping services through a network of Business Experts and Chartered Accountants across India.
Accountants may handle more advanced tasks like tax preparation, budget analysis, and investment development. Both Accountants and bookkeepers frequently use advanced financial software to record and track their information.
Advantages of Bookkeeping
Cost-Effective
Time Effective
Higher Profits
Reduced Tax Liabilities
Peace of Mind