This is the capturing, maintaining and providing a company s financial information for decision making. When Bookkeeping Temecula CA, many benefits to it. They include compliance to a country s compliance laws, availability of ready information for decision making, cutting cost, preventing fraud and also for making long term plans of the company.
Activities for accounting are, journal entries, posting bank accounts, bank reconciliations, budgeting, invoicing, posting payments, collection of monies from debtors and also closing of end of year accounts are all functions of book keeping. This must be done by one person and verified by another who is called an auditor. To a company that has got no book keeping system, there are many benefits and advantages that they are missing on. They include
Fraud can be detected. Book keeping ensures there a prove that a transaction was done in the books of accounts. Having this books ensures that what is in the bank matches what has been captured.when doing bank reconciliations, then fraud can be unearthed. The reconciliations should be done regularly to ensure that fraud is detected early enough
Decision making by management becomes easy. This is because there is ready information from accounting entries for reference. Decisions that involves money should be done on a basis of what is available in the bank, otherwise irrational decisions made on the basis of gut feeling can lead to losses. Decision making can be for future or for the present example whether to purchase now or then, whether to expect 100% collection rate or not, decisions associated with the levels of provisions.
Helps in cutting costs. Book keeping helps identify areas where there are greatest cost elements and also comes up with ways of cutting these costs. There are a lot of costs drivers in accompany and so if a company keeps its book well, they may identify these areas and come up with ways of cutting the costs.
To comply with the laws and regulations of the country, each company must file returns to aid in taxation. The government would want to know how much a company makes interms of profits so that they can get the correct amount of tax to be charged. This is aided by keeping proper books and confirmed by an independent auditor.
Budgeting also is done based on this function. Data from past activities can inform the financial planning for the future. It gives the company a perspective of the future and what to expect in terms of costs and income levels. Budgets can have a variance which can be explained by reference to the book keeping function.
Mistakes and errors are prom to happen when doing financial data entry. This can be intentional or non intentional. Intentional might mean a motive to defraud the company which must be investigated from the source documents. Non intentional mistakes also must be corrected and frequent reconciliation of books must be done to identify the mistakes.
this function must be done by a qualified accountant because there are set standard of accounting that must be followed. The function is also guided by principles and assertions by the management.
Activities for accounting are, journal entries, posting bank accounts, bank reconciliations, budgeting, invoicing, posting payments, collection of monies from debtors and also closing of end of year accounts are all functions of book keeping. This must be done by one person and verified by another who is called an auditor. To a company that has got no book keeping system, there are many benefits and advantages that they are missing on. They include
Fraud can be detected. Book keeping ensures there a prove that a transaction was done in the books of accounts. Having this books ensures that what is in the bank matches what has been captured.when doing bank reconciliations, then fraud can be unearthed. The reconciliations should be done regularly to ensure that fraud is detected early enough
Decision making by management becomes easy. This is because there is ready information from accounting entries for reference. Decisions that involves money should be done on a basis of what is available in the bank, otherwise irrational decisions made on the basis of gut feeling can lead to losses. Decision making can be for future or for the present example whether to purchase now or then, whether to expect 100% collection rate or not, decisions associated with the levels of provisions.
Helps in cutting costs. Book keeping helps identify areas where there are greatest cost elements and also comes up with ways of cutting these costs. There are a lot of costs drivers in accompany and so if a company keeps its book well, they may identify these areas and come up with ways of cutting the costs.
To comply with the laws and regulations of the country, each company must file returns to aid in taxation. The government would want to know how much a company makes interms of profits so that they can get the correct amount of tax to be charged. This is aided by keeping proper books and confirmed by an independent auditor.
Budgeting also is done based on this function. Data from past activities can inform the financial planning for the future. It gives the company a perspective of the future and what to expect in terms of costs and income levels. Budgets can have a variance which can be explained by reference to the book keeping function.
Mistakes and errors are prom to happen when doing financial data entry. This can be intentional or non intentional. Intentional might mean a motive to defraud the company which must be investigated from the source documents. Non intentional mistakes also must be corrected and frequent reconciliation of books must be done to identify the mistakes.
this function must be done by a qualified accountant because there are set standard of accounting that must be followed. The function is also guided by principles and assertions by the management.
About the Author:
Find an overview of the benefits of using bookkeeping Temecula CA services and more info about a reliable accounting firm at http://alphansglobalservices.com/services today.
No comments:
Post a Comment