Accounting is a fundamental pillar in the administration of any company. For a company to function correctly, it is necessary to have a good business vision and govern many factors. One of the most important is the regulation of your accounts and your financial situation since they are the aspects that will guarantee your continuity and stability. This is responsible for business accounting, a subject often complicated for students who sometimes get lost in accounting entries without becoming aware of the importance of this task in the company.
Advantages of accounting for a company
Today we help you discover the relevance of accounting, one of the most essential and necessary functions in any business model. When we talk about accounting in a company, we refer to the techniques that are used to be able to collect all the accounting engagements that the company carries out. Therefore, it is a discipline that studies the accounts of the company and allows to know what the economic situation of the company is at all times, its possibilities, benefits or losses. Accounting is an essential source of information for the company and brings excellent advantages to the company. For example:
- It helps to know the production cost of a particular service or product, allowing you to find out the price for which it should be sold.
- At any time, we can know the money we are earning or losing.
- The study and application alert us to general, superfluous expenses and the benefits of the investments made.
- Thanks to the balance sheet and the income statement, we can find out what the current financial situation of a company is.
Importance of accounting and accounting analysis
A large number of economic movements occur during an accounting year. Beyond the income and expenses of the company, all those assets that a company owns must be taken into account in an Excel file. To keep a proper record, it is important to fill in the mandatory accounting books for the company. For this, it is important to centralize the information of the different accounts of the company in the same space that. In addition, complying with the obligations with the Tax Agency to know the status and financial situation of the company at any time.
What is accounting for?
Accounting is not a unique thing for big companies. Knowing the state of the business at all times is essential for any transaction, including small and medium enterprises. Mainly, accounting in a company serves to know the stand of the industry as well as fulfil the obligations with the State. Here are the top 5 why reasons why do we need professional accounting solutions. Read on!
- Know the Business Status
Keeping up with business accounting is an essential task for all companies. Beyond the tax and accounting obligations that must be met. Keeping up to date, the registration of the company’s accounts allows visibility at all times of the state of the business situation. Centralizing the agendas of the company in the same space and having updated information in real-time allows the company to improve decision making as well as act immediately.
- File taxes
The Tax Agency requires, every quarter, that the company submit mandatory tax models, such as VAT model 303, IRPF model 111 or rental model 115. Also, on an annual basis, it demands that annual tax models, such as 180, 190, 347 or 390 to be presented to know how the company has done the previous year and what the business situation is.
Every one of them must be delivered within the deadlines set by the Tax Agency and without any error. In the case that they are delivered later than due or with some error in the tax model, the company would receive a sanction from the Tax Agency.
- Present the accounting books
The presentation of accounting books is mandatory for all companies. On an annual basis, the State must be informed of the actions or transactions that have occurred within the company during the accounting year. However, you should keep track of the accounting books up to date. We never know when we will have an inspection of the Treasury! Besides, the information they contain must be correct and accurate, since the Tax Agency can penalize you if there are any errors in the books. The daily book or the ledger or the invoice logbook are some of the ones you can ask us at any time.
- The Objective
Thanks to this discipline. It is possible to determine effectively and conclusively all the financial statements, having real and direct access to the financial results in a determined period. Therefore, professional accounting solution is a fundamental pillar in the administration of a company.
- Who is accounting for?
The accounting of the company is not something exceptional to the tax advisor or the business accountant. Four actors are interested in knowing the business accounting: the company, the company’s partners, the company’s advisor and the State.
Everyone in a company has an interest in knowing the state of the business at any time. Keeping business accounting up to date allows you to have visibility about what is happening in the industry. It is an advantage for the company because it will enable you to make better decisions in the future, as well as to anticipate possible downs and ups, reducing uncertainty. Having updated information about the accounts of the company facilitates the management- as long as the information is stored securely and accessible whenever required.
To keep the accounting up to date as well as do paperwork in an easy and fast way, you can seek professional and reliable accounting solutions and services.