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Which Accounting Services Do You Need For Your Business ?

by Lalithaa

Managing your business’s finances can be an overwhelming task. You might be familiar with various accounting tasks, but you may need several team members to ensure everything runs smoothly. Besides, hiring an accounts team can increase your labor costs, reducing your profit margin. Hence, an online accounting services firm can be a better option. 

Accounting services firms understand that your operational decisions can significantly rely on your financial position. Thus, reports such as the balance sheet, cash flow, and income statements can be vital. For instance, KAS Accounting and other similar firms can take on various accounting tasks and advise you on your financial position. This can be crucial when making business decisions that can grow your business. 

Accounting firms can offer various services depending on your business’s needs and size. These include the following: 

  • Financial Reporting

Financial reporting is an essential accounting practice that helps you understand your financial performance and status during a particular period. These reports detail such aspects as your cash flow status and profit margins on a monthly, quarterly, or annual basis.  

Financial reports can be critical when seeking additional funding from investors and lending institutions. In addition, they’re essential in maintaining transparency and trust with your business partners and your team regarding the company’s performance and financial direction.  

These financial reports are also important in understanding your tax obligations and compliance. They help your business meet regulations and avoid potential penalties. Moreover, you can use these reports to make your growth and expansion decisions because they help you comprehend whether you can sustain positive growth or run into cash flow problems. 

  • Tax Management

There are various levies every business needs to pay while in operation. These can be tax payments to the government and other charges to different regulatory bodies. Paying these obligations is necessary if you want to avoid penalties and fines. Therefore, you must know how much you should pay and when you’re required to make the payments. 

The tax management accounting function helps you keep track of your tax obligations and ensures that you meet them on time. In essence, tax management covers elements such as source deduction and filing returns. Source deduction ensures that you’re in the correct tax bracket, the correct percentage is deducted, and the same is successfully submitted to the relevant regulatory body. 

Additionally, tax management helps monitor current and upcoming legislation affecting your business’s tax obligation, so it helps you avoid overpayments or penalties and fines. This accounting service can also be essential when filing tax extensions and handling tax audits. 

  • Internal Auditing

Internal auditing helps evaluate your business’s performance and assess its risk exposure. It also measures existing performance against standards, protocols, procedures, and regulations. With this, you can find out if your current standard operating procedures are still adequate or if you need to change them. 

Internal auditing in accounting helps evaluate factors such as supply chains, procurement procedures, financial reports, and cost controls. Its primary aim is to ensure that there are no loopholes that may result in financial losses. Likewise, an internal audit process can help generate a status report on your business’s risk management, compliance, and process improvement. You can schedule your internal auditing weekly, monthly, bi-annually, or annually, depending on your business operations. 

  • Payroll Processing

Payroll processing is more than just preparing the periodic payments for your staff; it involves calculating and determining statutory deductions and allowances to arrive at the net pay due to individual team members. A payroll process also helps define basic and variable pay and file returns due to relevant authorities. 

Payroll processing is also important in maintaining a cordial relationship with team members. So, the process must be accurate, timely, and consistent.

  • Bookkeeping

You might consider this accounting function basic and easy to perform. However, its accuracy and detailed capture of information are pivotal. Bookkeeping helps your business keep track of all income and expenditures for a particular period. It’s the foundation necessary for accurate financial reporting. Therefore, if your bookkeeping records are wrong, your financial reports will also be inaccurate. 

The recording of daily financial transactions can be unbearable to some, but bookkeeping software can ensure you don’t miss any figures. Your recording can also be single-entry or double-entry, depending on the size and nature of your business’s operations. For instance, double-entry can be critical if you have credit facilities.  

Furthermore, your bookkeeping can also take the form of a journal, a ledger, a cash register, or a trial balance. These bookkeeping records can help you keep track of your finances. Thus, they can be crucial if and when you need to perform an audit of your financial books.

Conclusion

Knowing the financial performance and position of your business is crucial to its growth and continued operations. It’s also vital to accurately and timely fulfill your obligations to your staff and regulatory bodies. These are all possible with the essential accounting services discussed above. 

 

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