Bookkeeping & accounting services are one of the most essential services for every business. Bookkeeping is systematic way of keeping the records of company’s accounts, financial statements and all the financial transactions which were recorded under the name of company. Modern day bookkeeping does not just end here, infact the real challenge starts from here.
With the new technology updates every now and then, bookkeeping has also evolved over time. In the traditional times bookkeeping was considered a tedious job since a lot of paper trail need to be prepared so as to refer the documents in future. But modern day bookkeeping is on everyone’s finger tips and is just a click away.
Major reasons to outsource your bookkeeping & accounting services are:
1.) Helps in effective planning of resources: Resource is the most primary fundamental on which every business smoothly runs its operations. So minimal wastage at the most primary stage will increase the efficiency of the enterprise and it will make it easy for you to bring economies of scale to your business.
2.) Managing accounts books: Online bookkeeping services will make it easy to maintain and manage your company’s books of accounts. Since the bookkeeping is the mandatory requirement under different statutory laws which need to be fulfilled such as:
Companies act, 2013
- Companies act, 2013 mandates that books of accounts should be maintained for a period of 8 years immediately preceding the current year.
- Section 25 companies which are solely formed as “Non-profit companies” are required to keep books of accounts for period of not less than 4 years.
Income tax act, 1961
- If the turnover from business/profession is more than INR 25, 00,000 or the income from business/profession exceeds INR 2, 50,000 in any of the 3 preceding financial years, then it is mandatory on the part of the assessee to maintain the records.
- The books should be maintained for a period of 6 years from the relevant preceding year.
3.) Improved decision making: When you have all the past performance with you, it becomes easy to analyse where the enterprise is lacking behind. Ones you can see all the quantitative reports in front of you, a business can make a much informed decision. With proper analysis of the accounts comes better decision making power. If you does not possess the books of account of your business then it might hamper your decision making power which will you and your business to grow. Hence your decision making also depends on the bookkeeping. Professional bookkeeping service will help improve the quality of accounts you maintain and makes the analysis easy.
4.) Ease in reporting: Investors want to know the company’s financial results to be able to measure its investment value. Exactly this is what financial statements do. The balance sheet, statement of sales, and statement of cash flow all display the importance of your company.
Financial statements are the result of bookkeeping. Bookkeeping helps investors to keep the details up-to-date and available. Investors should be able to make smarter, well-educated choices that are essentially for bookkeeping purposes. Bookkeeping is not only about existing investors but also about potential investors.
FREQUENTLY ASKED QUESTIONS (FAQ’s)
Question: Why should I outsource my bookkeeping & accounting services?
Outsourcing bookkeeping & accounting services will help a bookkeeping expert to manage all your company’s books of account and make an informed decision on the same. Modern day bookkeeping has many more things which will help in optimizing your compliance cost, make it convenient to analysis the company’s performance, save time and resources.
Question: How does outsourcing bookkeeping & accounting works?
Compiling data >>> Preparing invoices/receipts >>> Verifying receipts >>> Matching the cash/bank statement >>> Income statement >>> Balance sheet >>> other financial statement
Question: How much does outsourcing bookkeeping & accounting services cost?
As compared to the internal cost of setting up bookkeeping & accounting department internally in the organization, outsourcing is most beneficial. Setting up an internal department will wash away an enterprise most precious time & resources whereas if you outsource bookkeeping & accounting service it will help you to maintain economies of scale for your enterprise.
Feel free to reach out to our bookkeeping & accounting experts to get further guidance on the same.
Read more: Why Is It Cost-Effective and Advantageous To Have a Professional Maintain Your Book?