Importance of Accounting
Most entrepreneurs dislike accounting. However, organising your accounts is important, especially for controlling and the financial report at the end of the year.
Accounting is all about registering all the revenues and expenditures as well as changes in your assets. This means booking all your receipts, invoices and payments without making any mistakes.
Most people that run a company dislike doing bookkeeping, mainly because they lose focus on important operational tasks. However, even if accounting does not count as operational business, it is important for the following three reasons:
Due to your tax return you need to compile your annual financial statements at the end of each year. Depending on your expenditures and your revenues you will have to pay tax. A thorough and faultless tax declaration ensures that you have declared all your expenditures. This leads to a lower profit and therefore a lower tax burden. Therefore faultless accounting will save you money!
Thanks to your accounting you can analyse all your expenditures and revenues. For example, controlling can help pinpoint and eliminate to high expenditures. You can also analyse which goods and services are the most profitable and which ones might cause you a loss. This crucial information is very helpful when making long-term decisions.
All firms that are liable to VAT need to draw up their VAT every quarter of a financial year and pay it to the government. There is no room for errors or delays, for which reason you need good preparation and organisation.
It is important to organise your bookkeeping. We can take care of your accounts while you focus on your operational business. Send us your invoices by mail and we will take care of the rest.