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All businesses need to maintain some records. These business records may include employment contracts, meeting minutes, memoranda, and accounting source documents. As a business owner, you need to outsource a reputable resource of record management. Among all these, especially accounting sources, require you to seek topnotch professional services.
What are accounting records?
Accounting records are the record of your organization, including the journal entries, ledgers of transactions, and original source documents. These records assist your finance team in making and management of financial statements.
Most organizations retain these records for a few years as several regulations require you to refer to them at one point in time or another. You may need to retrain these, too, as external entities possessing the authority to inspect your organization’s records may visit and as for inspection. With accurate accounting records, you have more ease of monitoring your business progress. This enables you to make business decisions of crucial importance.
This article aims to introduce you to the ways in which well-maintained business processes help monitor the progress of your business.
Five ways accurate business records help monitor business progress
Business records need to be free of misrepresentations and inaccuracies. But for ensuring this, you cannot rely on an ordinary employee in your company. Thus, it is imperative that you seek the services of one of the top accounting firms for an independent and unbiased approach towards bookkeeping and record management.
Top ways accurate accounting records and books help your monitor business progress are as follows:
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Projections of tax liability
Among many other parameters of evaluation of business progress, you can take tax liability as a considerably important one. The amount of taxation that any organization is liable to depend on a lot of factors, including the production, amount of value your company adds to goods or the number of people it employs.
If you have secure, accurate, and up-to-date financial and accounting records for your workplace, you will be able to have a fair idea of your business progress.
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Prepared financial statements
None of the affairs in any workplace can be conducted without the involvement of a financial transaction. All these transactions, no matter how small or big, must be recorded. When the outsourced accountant keeps all of these updated, and consistent, you can always refer to them
An accurate reflection of the transaction, whether small or big in its magnitude as well as impact, will help draw a clear picture of all transactions for dependent decisions.
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Known sources of receipts
Receipts are difficult to manage because they are so many. The sources are also varied. This variety of sources makes it difficult to set the business expenses and receipts apart from non-defining ones.
With the help of accurately managed records, your organization will be able to distinguish taxable records as well as those which affect vital business decisions.
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Tracking of deductible expenses
Expenses of any organization can be of various categories. Some of those are deductible, while others are not. Distinguishing the deductible and non-deductible expenses is important because, at the end of the year, you have to file returns.
These returns and payable amounts are defined by the relevant receipts, kept in order by the accountant responsible for books and record management.
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Prepared tax returns
Every business has tax return liabilities at the end of a specific time period. These returns are a function of various components of your business records. With accurate accounts and well-managed books, the documents pertaining to incomes, operational expenses, and credits that you report are ready to utilize at any time.
Thus, your administration can easily use the gathered information to assess the payable amounts. These same records act as the determining factors for monitoring your business progress over a period of time.
Your business needs accurate accounting records!
Your business records must always be in order and available for access to the people with authority. Thus seeking one of the best accounting firms in Dubai is important if you want to monitor your business progress at all times. An accounting expert, when outsourced, will work independently and without any biases towards any department in your organization.
Regular updates and ordering of your business accounting records will enable your organization to be prepared for audits and tax returns at all times. It will be easy to assess the profits and make projections for the coming times. It will also enable you to have common knowledge of sources of receipts and standing of financial statements. Thus, make sure the records in your organization are put in order, accurate, and free of any misrepresentations.
It will enable a more streamlined workflow in the premises of your organization and enable you to monitor progress better than ever before. Thus, keep business records accurate and transparent.
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