Benefits of Bookkeeping for Companies

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Bookkeeping in a company is the basis of the accounting system that is run in it. According to Law Number 28 Year 2007 Article 28, bookkeeping is a process of recording that is carried out regularly to collect financial data and information which includes assets, liabilities, capital, income, and costs, as well as the total acquisition and delivery price of goods or services, which are closed with prepare financial statements in the form of a balance sheet, and income statement for the tax year period. As the points noted, the benefits of bookkeeping for the company are also quite a lot. The benefits of accounting for the company are not only felt for the current operation, but also for future development. This is because bookkeeping can provide a clear picture of how the survival of your company. Without proper bookkeeping, it will be difficult for you to make decisions in order to perform efficiently in the company. The following are some of the benefits of bookkeeping for your company.

Separator of Business Assets and Personal Assets

Running a business means you are committed to professionals in every line including in financial matters. Never apply household management in a company. Management like this is managing business assets and personal assets into one. This type of business owner will find it difficult to distinguish between personal and company assets. You can just use personal finance for the company and vice versa. If this continues, it will become a time bomb and harm yourself as well as the business you are running. Therefore you must understand the importance of bookkeeping for the company. Bookkeeping is done regularly will help you to more easily separate business assets from personal assets so they do not mix. Thus, we can know the results obtained and allocate them to future business plans.

Indicates the Amount of Profits Obtained

Setting up a business is inseparable from the problems of profit and loss. There is a phase where the company that you run gets a profit and there are times when you have to experience losses. Bookkeeping is needed to monitor the performance of your company. The general ledger contains capital, expense expenses and income received in an accounting period. From this information you can see and analyze how much profit is gained.

Reference in Decision Making
Complete and detailed bookkeeping will be an analytical tool for business performance. The results of this analysis will be used as a reference for making decisions and developing further business strategies. Complete bookkeeping will produce a precise analysis that will affect the decisions that will be taken by the company. Because a good decision must be based on complete financial information. And the bookkeeping process that will provide it and provide a clear picture.

Reference in Tax Calculation and Reporting
A company certainly has a responsibility to report taxes. For tax reporting, financial records are needed for the past one year. There are many transactions that must be entered and calculated to get the amount of tax that must be reported. This process will be very inconvenient if your company does not collect it little by little every day. With bookkeeping, you can immediately provide complete financial information when needed. So, there will be no drama looking for and losing receipts, invoices and so forth.

Report to External Parties
Many external parties associated with your company, be it investors, creditors, other companies who want to work together and the community as consumers. These parties will certainly not provide assistance or collaborate with companies that do not have prospects. They often ask for financial reports to assess company performance. These parties will lean towards your company when you have arranged financial information on a regular basis. In addition, the larger your company, the greater the obligation to upload financial statements as transparency to the people who consume your products and services. This is where bookkeeping is needed to fulfill reports to these external parties.
Bookkeeping in a company is the basis of the accounting system that is run in it. According to Law Number 28 Year 2007 Article 28, bookkeeping is a process of recording that is carried out regularly to collect financial data and information which includes assets, liabilities, capital, income, and costs, as well as the total acquisition and delivery price of goods or services, which are closed with prepare financial statements in the form of a balance sheet, and income statement for the tax year period. As the points noted, the benefits of bookkeeping for the company are also quite a lot. The benefits of accounting for the company are not only felt for the current operation, but also for future development. This is because bookkeeping can provide a clear picture of how the survival of your company. Without proper bookkeeping, it will be difficult for you to make decisions in order to perform efficiently in the company. The following are some of the benefits of bookkeeping for your company.

Separator of Business Assets and Personal Assets
Running a business means you are committed to professionals in every line including in financial matters. Never apply household management in a company. Management like this is managing business assets and personal assets into one. This type of business owner will find it difficult to distinguish between personal and company assets. You can just use personal finance for the company and vice versa. If this continues, it will become a time bomb and harm yourself as well as the business you are running. Therefore you must understand the importance of bookkeeping for the company. Bookkeeping is done regularly will help you to more easily separate business assets from personal assets so they do not mix. Thus, we can know the results obtained and allocate them to future business plans.

Indicates the Amount of Profits Obtained
Setting up a business is inseparable from the problems of profit and loss. There is a phase where the company that you run gets a profit and there are times when you have to experience losses. Bookkeeping is needed to monitor the performance of your company. The general ledger contains capital, expense expenses and income received in an accounting period. From this information you can see and analyze how much profit is gained.

Reference in Decision Making
Complete and detailed bookkeeping will be an analytical tool for business performance. The results of this analysis will be used as a reference for making decisions and developing further business strategies. Complete bookkeeping will produce a precise analysis that will affect the decisions that will be taken by the company. Because a good decision must be based on complete financial information. And the bookkeeping process that will provide it and provide a clear picture.

Reference in Tax Calculation and Reporting
A company certainly has a responsibility to report taxes. For tax reporting, financial records are needed for the past one year. There are many transactions that must be entered and calculated to get the amount of tax that must be reported. This process will be very inconvenient if your company does not collect it little by little every day. With bookkeeping, you can immediately provide complete financial information when needed. So, there will be no drama looking for and losing receipts, invoices and so forth.

Report to External Parties
Many external parties associated with your company, be it investors, creditors, other companies who want to work together and the community as consumers. These parties will certainly not provide assistance or collaborate with companies that do not have prospects. They often ask for financial reports to assess company performance. These parties will lean towards your company when you have arranged financial information on a regular basis. In addition, the larger your company, the greater the obligation to upload financial statements as transparency to the people who consume your products and services. This is where bookkeeping is needed to fulfill reports to these external parties.

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