Bookkeeping is at the heart of accounting. Recording all financial transactions by a certain company is the main activity of a bookkeeper. There is a common misconception about the relationship between accounting and bookkeeping. They are not the same thing, since accounting is a broader activity. As London accountants we provide effective bookkeeping solutions for companies.
Success or failure?
Bookkeeping is an essential process to get a comprehensive, global financial picture of your company, understand whether it is doing well or not, monitor expenses and better understand how to make the necessary changes to improve your current situation.
There are companies promoting the idea that all bookkeeping needs can be solved with one piece of software. Chances are the people who trust them are going to be disappointed.
The financial analysis needs of a company are so crucial and complex that it would be very dangerous (the bigger the company, the riskier) to rely on a software system only.
Daniel Consultancy Business Bookkeeping
Great bookkeeping helps businesses stay organized, profitable and under control. Companies offering great products or services are going to fail if they fail the financial management side of the business. Financial analysis is what allows entrepreneurs to answer crucial questions. Is the business we are talking about on sound financial ground? Is there any potential source of risk? Working with a chartered certified accountant in London makes your life easier because you do not have to fight with complex software systems and you can save a lot of time and troubles. Good records are necessary for a number of reasons:
- Income tax returns preparation
- Monitoring for decision-making
- Obtaining bank financing
- Distributing profits to partners
- Complying with tax rules