Why accounting & bookkeeping is important for start ups fastcollab blog

16/09/2016

Why Accounting & Bookkeeping is important for Start­ups | FastCollab | Blog

WHY ACCOUNTING & BOOKKEEPING IS IMPORTANT FOR START­UPS July 28, 2016 Mukul Agarwal

Some of the important reasons why entrepreneurs should focus on this area

1. Tax Return Due to the tax return, business owners want to compile their annual financial reports at the end of each year. Depending on the business transactions happened throughout the year. A thorough & faultless tax declaration ensure that start­ups have a track of their finances. It helps in filing exact tax returns and saves them from any penalties. Therefore

Accounting & Bookkeeping is all about registering revenues & expenditures happening in a impeccable accounting can save business. And mainly included booking all your receipts, invoices & payments withoutspending on unwanted penalties. making any errors. Accurate bookkeeping can support your business finances to be on track. 2. Better Control on money flow

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Thanks to accounting, entrepreneurs can analyze all their expenditures & revenues. Control on money flow can pinpoint and eliminate high spendings. Entrepreneurs can also analyze which product or service and which business activities are the most profitable & where the start­up is draining out unnecessary money. This crucial information is vital when making long­term decisions.

3. VAT Returns

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16/09/2016

Why Accounting & Bookkeeping is important for Start­ups | FastCollab | Blog

All business that are liable to VAT requires drawing up their VAT every quarter of the financial year & paying it to the government. There is no room for mistakes or delays, for which reason start­ups need to maintain proper bookkeeping of all the accounts.

Many small firms started as the hobby or side business uses cash basis accounting. This kind of accounting method gives businesspersons with a simple and easy method for maintaining accounting information.

4. Increased Productivity Accounting is the original way for a business to determine its productivity & profitability. Even small businesses are capable of producing high amounts of sales revenue. Whether it is small or medium size business, accounting is a vital requirement to anticipate financial estimates. Startups need to provide banks, lenders or investors with the financial forecast associating to their business venture. This information is necessary for obtaining outside financing for business start­up costs.

5. A better Financial Forecast Entrepreneurs typically write the business plan, which involves an expected economic forecast, and monthly expenditures, and pro forma financial reports. This accounting information is gradually relied upon by the stockholders to assure the entrepreneur has his finances done correctly. An accounting process permits your business to see at a peak where exactly your business stands, & how it is performing financially.

Why Outsourcing Accounting & Bookkeeping is a profitable aspect?

Maintaining Accounting & Bookkeeping for your business can be a tedious task. Specially when entrepreneurs are not from finance background, it can take away most of the crucial time and entrepreneurs can lose focus on critical business tasks.

Outsourcing experts for bookkeeping and accounting services are well versed with how to handle any financial activity for a business. FastCollab Marketplace helps companies / start­ ups tp connect with expert service providers catering to your specific needs.

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