Accountancy and Bookkeeping
What is accounting and bookkeeping?
As per definition, accounting or accountancy is the measurement, communication and processing of financial information. Accounting is a language of business. The results of a company’s economic activities are measured by accounting and conveyed to investors, shareholders, customers and all parties involved with the company. Book keeping is the is the recording of financial transactions in financial reports. Accountancy services for small businesses are as important as that of big companies and should be taken very seriously. How then can small businesses keep their accounting records? Remember, there is a difference between a bookkeeper and an accountant.
The main options for bookkeeping are:
Most stationeries out there sell bookkeeping books and the owner of a small business should purchase one. They are very cheap and affordable. They will use this book to keep your records on pen and paper. The limitation to this is that you only have one copy of the information and should it get lost you have a major setback.
This is the simplest computer program from Microsoft Office that a small business can use to keep records. Excel offers spreadsheets which can be edited and used to keep financial information. Excel can be used to do basic arithmetic calculations as well as complex ones depending on the level of study of the user.
These include programs such as quick books which you can buy and implement for your small business accounts. The most common software package is Sage which will deal with all of your book keeping needs. The set back is that it takes a bit of learning before you are able to use it at a professional level. Some software packages offer payroll solutions, but it’s usually better to use payroll services sussex for such practises.
When it comes to accountancy services for small businesses, some business men prefer to hire an accountant to deal with the businesses financial records. In as far as choosing the right accountant, working with him of her and choosing the right software the following points are of importance;
Make sure you check out their qualifications:
Find out the firms in your country that have been ranked as number one in terms of finance and accounting matters. Reviews are available online or you can get advice from fellow businessmen. It will be costly to hire accountants from such firms but your financial records will be in the best hands. As a businessman always remember cheap is expensive. Reputable companies like Virgo Consultancy will have reviews, and be members of appropriate industrial bodies.
Accountants can advise you on estimations:
When it comes to whether or not you have enough funds to meet your tax liabilities, most businesses estimate a percentage of profit that would typically be payable based on the previous business year results. The west hampstead accountants will be able to advise you on such matters.
Maintain a good relationship with your accountant even after appointment
The accountant will issue you with a letter stating their terms and conditions, which you should carefully read before endorsing it. Even after appointment, they should always keep in touch not only at the end of the financial year. You should also reciprocate by telling them of any changes in your business no matter how small and problems or challenges that you are facing. Remember to always review the charges your accountant is charging you from time to time. This way you are able to tell if your accountants services still match your business needs.
Choose an accountant you get along with.
Personality, is key. Since you will be divulging quite sensitive information about your business to the accountant it is good to hire a person whom you get along with. Often many people complain about their accountants.
Picking the right software:
Picking the right software is like buying a new car. some people like Ford, other Toyota and so on. They all do the same job but it is the feel that makes a difference. The same applies to choosing a software that will help in accountancy services for small business. Sage is the most popular as it is very simple but QuickBooks is very professional. Remember, most software’s have a free trial. Try before you buy.
Accountancy for small businesses (http://www.virgoconsultancy.org) is necessary as we have seen. Look at the individual tasks which need to be done, do they need to be done by you or an outsider? If you opt for the outsider, take your time and vet all the options available..
Should I Use an Accountant for My Roofing Company Accounts?
Let’s face it, roofing company accounts rarely fill the average business owner with excitement; running your own company or working as a freelance roofer gives you enough to do, without having to find time for the boring financial stuff too. However, while it’s accepted that it’s a necessary evil, have you ever considered all of the benefits of keeping good financial records?
When company accounts are a legal requirement
“The act of keeping up legitimate company records isn’t a lawful necessity for every roofing company, except it’s fundamental that you know when it is”, says Ironwood Shake & Tile of Victoria, BC Canada
Independently employed roof installers don’t really need to keep this sort of record, yet in the event that you’re a constrained company, its the law – so you can’t dodge it, regardless of the fact that you want to. The same tenet applies in case you’re an organization made up of any constrained companies as well – you must have authority company records delivered toward the end of each financial year.
Despite the fact that independently employed roofers don’t have to keep authority accounts, any expert accountant will let you know that it bodes well to do as such. At last, regardless you need to document a tax give back consistently, and its such a great amount of less demanding to keep fitting records, redesigned consistently, than to face the end of the tax year with a tremendous box loaded with free printed material – filtering through a clutter of receipts and invoices could mean you spend actually days working out your tax risk. The simple arrangement in the event that you can’t face doing it without anyone’s help is to send your printed material over to an accountant toward the end of each month – this will surrender you a to-date record while sparing you the anxiety of managing it all yourself; your accountant will likewise have the capacity to document your tax return for your benefit.
Different advantages of keeping company accounts
Despite your legitimate position, even freelancers can procure the advantages of keeping fitting records. In the event that you work with an accountant, they will have the capacity to utilize your financial records to offer relevant business exhortation, including development procedures and consumption diminishment. Having this information to hand means that you can cooperate to enhance your primary concern and discover approaches to decrease your tax obligation.
Your accountant will likewise let you know that these authority records can likewise help you with other non-business related issues. Independently employed individuals can now and again think that it difficult to persuade a bank to loan you cash or give you a home loan. By having company records to reveal to them, you stand a vastly improved chance of getting them on your side; actually, a few loan specialists demand seeing 3 years worth of company records before they’ll consider you for a loan or home loan.
In Victoria, British Columbia, company records can likewise help with planning, or even keep you on top of other looming liabilities, for example, the need to enlist for VAT – and on the off chance that you utilize an accountant, they may have the capacity to get you on the level rate conspire as well. Fundamentally, whether you lawfully need to or not, keeping company records is the most ideal approach to manage the cash concerning your business.
Changing Accounting System To QuickBooks
Changing your accounting system to QuickBooks is one of the best things that would ever happen to your business. In the business world, it is a known fact that time is money; in that regard it would not be viewed as wise if one were to spend 50% your working hours purring over accounting records.
There is so much that goes into running a business successfully; talking to your customers and getting feedback for your projects, meeting with various sectional heads to discuss strategy, experimenting with different/innovative product ideas to keep you ahead of the game…all these and more compete for your time. This is why an effective and efficient accounting system is required to allow you devote your time to other areas of your business.
Traditional accounting systems
Taking a close look at traditional accounting methods, one would notice that all the entries are done manually. A slight mistake in data entry could lead to hours spent scouring through every single column or row. Let’s consider the fact that your spreadsheets cannot provide you with real time information such as keeping track of your inventory, automatically send invoices to clients, reconciliation of bank statements etc.
on the other hand was designed to run like a well oiled piston, you would find that overall, there is a lower margin for error. Product reconciliations, bank statement reconciliations are done much faster. This gives you more time to interpret any data, aids in making smarter business decisions and subsequently provides support to your organizational strategy.
How do you change Accounting systems to QuickBooks?
There are a couple of ways you could do this; you could try the QuickBooks conversion tool which was designed to aid conversion from Microsoft Accounting or Peachtree or you may consider getting in touch with the team at QuickBooks that helps with data conversion from sources other than the ones listed above.