Bookkeeping: rigor and meticulousness
Bookkeeping is essential for SMEs and large companies. A company that neglects this activity exposes itself to sanctions that may come from the tax authorities, but also from the State itself. It is therefore necessary to take into account the compulsory nature of this activity. On the other hand, it is important that this Accounting and Bookkeeping Services in Australia done in the most natural way possible. It will not be a source of stress and the documents will be error-free.
What documents are require for keeping accounting books
There are 3 documents that must be complete on a daily basis. This makes it possible to trace the history of the accounting and finances of a company from its creation to the present day, through all its successive years of existence.
First there is the journal. This document contains all the information on the management of the assets of a given company. A journal may be just a company’s only journal. It is mainly small businesses that use this process. All accounting entries will then be concentrate on a single document.
A journal can also be the main document summarizing all the accounting entries previously indicate in auxiliary journals. In this specific case, it is important to keep all the subsidiary books. These books will then become evidence to confirm or invalidate everything that is said in the journal.
Namely that a diary is to be fill in on a daily basis. It is not tolerable that the person responsible for keeping this document does not complete it, even for a single day.
There is also the ledger to be kept on a daily basis. This document presents the chart of accounts of the company on one side and the movements relating to each accounting account indicate on the other.
There is still the inventory book which deals with the assets and liabilities of the business. This document also includes information on stocks, fix assets, receivables, debts, etc.
Note that the inventory book is no longer mandatory for accounting years that start on or after January 1 , 2016.
Keeping accounting books: what are the advantages?
Present as a mandatory activity, the keeping of accounting books is however a whole advantage for companies.
By keeping the accounting books efficiently, the company is in good standing vis-à-vis the law and also the tax services.
Accounting books kept properly and above all up to date allow precise control of accounting activities by a consultant or an accountant if necessary. It becomes impossible for malicious accountants to falsify the accounts, because everything is said in these essential documents. If there are contradictions in the accounts, the accountant who Carrie out this must give tangible explanations to the risks of suffering severe sanctions.
Up-to-date accounting books allow you to know the financial health of a company from its creation to the present day. Thanks to these documents, it even becomes possible to have a graph allowing to know with precision the evolution of the finances of the company over the years. The accounting books then become documents that greatly help decision-making with a view to the financial security and development of a business.
How to keep the require accounting books?
The accountant has the choice between doing the follow-up in manuscript or in electronic format. For companies that have several accountants, the keeping of accounting books can be entrust to a single accountant or can be done on a rotational basis.
The problem is this: what accountant can guarantee that he never fails to keep the accounting books throughout his years of service? Of course, a working method can be put in place to make this happen as it should. Nevertheless, an oversight happens so quickly and no one can claim to be able to escape it all the time. In addition, each accounting book must not undergo alteration over the years. Here again, you will need a talent documentalist and archivist, because it is not that simple.
Powerful software for bookkeeping
To avoid forgetting problems, it is wise to use reliable and efficient accounting software for keeping accounting books. This software allows for example the automatic recording of everything done in the annex journals with a view to the constitution of the accounting books.
If you forget to fill in the require accounting books, the software can offer an alarm or a buzzer that will alert the accountant to whom this task has been entrust. Indeed, the software is programmable at will. It is up to the accountant to do so according to his convenience and so that this software is really a tool that makes him lighter and more efficient in the exercise of his work.
Should you hire the services of a service provider?
It can be a great idea. The company’s accountant can then take care of the day-to-day management of accounts, expenses and financial gains. It is the service provider who will take care of the keeping of the accounting books.
Among the most reliable service providers is Numbers Pro, a consulting agency that has more than 20 years of experience in providing accounting services. The advantage with this agency is that the imposition of respect for confidentiality is only a formality. She is use to the system.
If, after a few years, the company wants to resume monitoring the accounting books, the agency will be able to provide it with all the necessary information on these documents. It can even provide useful advice that allows efficient management of this accounting obligation.
Other services relating to accounting are also to be discovers with Numbers Pro.
