Once we have established a business set up, we have to keep everything maintained in order to avoid the complications. We need to manage each and everything and keep the crystal clear so that there is nothing hidden from the management, employees and the owner of a business. We all know, we do not excl in all the domain of life that’s why we hire employees who are experts in their own domain. We take their help in flourishing our business and in against we have to pay them as per their abilities.
There is one thing that help each and every time to all the business as the contribution of this thing in our business is not negligible. We can’t survive without the maintenance of account book keeping. Also, we need to keep an independent account for taxation as well. We all are bound to pay taxes to the government. If we do not pay so, government has all the rights to seize our business any moment. So, to avoid any mishap we have to keep everything in our mind.
The Importance of Book Keeping in Business:
We have talked about book of accounts. Let’s have a look at the benefits if keeping book for accounts.
- Investment in Buying Raw Material:
Without investment no business can work and we all know this fact. We have to keep on investing the amount in our business unless it is making enough profit that we do not need further expansion. For example, we have started a business of selling snacks. Initially, we have 2-3 items. Gradually, by making profits we re-invest our profits in order to sell 5-6 items at the same time. We keep all the records of our expenses as well as profits in that account. It tells us that how much have we invested at that time and how much return we have in hand in that particular month.
- Day by Day Transaction Record:
We have often seen in departmental and utility stores that they keep a record of day by day transaction. The reason of keeping it is that they buy different products from different companies. They need to keep all the records individually as all the products give independent product and we also have to pay them independently.
- Saves Time:
It saves a huge chunk of time of both the employees and the owner of a company. We can easily how the book to the owner that this transaction has been placed through out a day as there is nothing hidden in it. Efirm has been offering services of tax accountant in Melbourne CBD and book keeping services. We have a professional team player who can help you in managing your business at good prices.