Benefits of Taking of Accounting Services
It is a widespread belief that accountancy is somewhat related to figures, numbers and thick books. At the mere mention of the word accountancy, people tend to think that it is such a boring and a dull subject. However, accountancy is just contrary to this perceived notion of the people. It is full of liveliness. Once we understand the basics of accountancy, this subject will be the most vibrant and practical subject. Accountancy can give a new life to the businesses which are on the verge of being insolvent. It can also take the businesses which are already doing well to the new apex of success. Through the proper recording of all transactions in journals, ledger accounts, trial balance, profit and loss account, and balance sheet, one can have a correct glimpse of the where it stands. This procedure is known as accountancy.
There are a host of parties which are interested in the accounting information of the business. The tax authorities require this information to determine the amount of tax due to be paid by the business and whether the tax amount self-assessed by the businessman is accurate or not. The bank manager would consider this data at several numbers of times such as while advancing loan, etc., auditors show interest in the accounts of the business to conduct the annual audit. The creditors desire to know whether the business will be able to pay back their payment for the goods or services bought on time or not.
By means of proper management of the books of accounts, business is able to know the cash flows from operating, investing and financing activities. If the books are entirely up-to-date, then it can make payments to the taxman on a timely basis. The businessman is also able to judge the growth of customers through the sales figure. With the help of accountancy, the figures of business can accurately be categorized into assets, liabilities, incomes, and expenditures.
Thus, no business can sustain without the existence of an organized and committed accountancy technique that makes possible for the businessman to make an account of every business transaction during a particular period of time – whether it is on a daily basis or weekly or monthly or quarterly or annually. An accountant is the practitioner of the accountancy profession. But an accountant should never be confused with a chartered accountant.
Chartered Accountant is highly educated and has attained the status of being chartered after passing examinations of the certified professional bodies and can perform accounting for Government Companies and his/her signatures are valid for acceptance by banks and any other regulatory authority. An accountant can be someone is capable of preparing books of accounts but without any privileges discussed above.
Choosing the most appropriate accountants in London can make or break your business. Many times, people from non-accounting background tend to consider all accountants are equal. But this is not the case. One wrong decision can ruin one’s business. Thus, one should carefully examine the services, experience, and reliability of all the accountants before selecting the best accountants near you who would carry out the accountancy responsibilities of one’s business perfectly.