Bookkeeping and accounting are an essential part of doing business, regardless of the industry. In business, proper bookkeeping and accounting signify proper management too. From bookkeeping and accounting, business owners will also understand how the company is performing. Whether you hire an payroll services for xero in manly or do it independently, keeping your books organized will help keep track of the necessary records.
Some of the advantages of keeping financial records in an organized manner can help you plan decisions that will certainly affect the future of your business.
Considering that financial records in the company are very important, the recording process must be absolutely accurate and organized. Organized financial records can help:
Track and compare past and present financial positions
Planning and forecasting the financial position of a company
Provides information in making good business decisions
Save time and energy if your business gets audited
When you are running a business or engaging in commercial activities, you must keep records of various business transactions. These records may include:
Paper or electronic receipts
Expense and sales details
Details of salaries and taxes collected and taxes paid
For how long? In general, it is recommended that you keep all supporting records and documents used to determine your and your company’s tax liabilities for a period of six years from the end of the last relevant tax year. At a minimum, financial records must be permanent, accurate, and complete which cover your daily income and expenses.
An effective recording system is one that is easy to use, easy to understand, reliable, accurate, consistent, and can provide information in a timely manner. Each of these systems can be used by the company. It only depends on the needs and the type of company you have.