Guide on how to keep company accounts
Keeping a company’s accounts is a fundamental task to ensure its smooth running and long-term sustainability.
In this guide, you will learn the essentials of business accounting, from the basics to the most advanced tools that make business accounting easier.
We will also discuss how the use of business accounting software can optimise this process.
Importance of corporate accounting
Business accounting is essential for any business, regardless of size or sector. It allows us to have accurate control over finances, ensure compliance with legal obligations and make informed decisions.
So good accounting helps us to maintain a balanced balance sheet, manage cash flow efficiently and produce financial statements that reflect the economic reality of the business.
Initial steps to organise accounting
To get started with business accounting, it is essential to follow a series of steps to ensure a solid and organised structure from the outset:
Necessary documentation
The first step is to gather all the necessary documentation. This includes invoices, receipts, contracts, bank statements and any other relevant financial documents. Having this documentation organised is essential for keeping accurate accounting records.
Establish an accounting record keeping system
Once we have the documentation, the next step is to set up an accounting record-keeping system. This involves creating a proper chart of accounts that reflects all business transactions and defining processes to record each transaction correctly and in a timely manner.
Accounting tools and software
The use of business accounting software has revolutionised the way we manage our finances, with the following standing out:
QuickBooks
QuickBooks is one of the most popular accounting software used by small and medium-sized businesses. It offers features such as invoice management, expense tracking and financial reporting.
Sage 50cloud
Sage 50cloud combines the robustness of desktop software with the flexibility of the cloud. It enables inventory management, cash flow control and detailed reporting.
Xero
Xero is a cloud-based accounting platform, ideal for small businesses. It facilitates invoicing, bank reconciliation and real-time project tracking.
Zoho Books
Zoho Books is a comprehensive accounting solution that offers tools for invoice management, expense tracking and financial workflow automation. It is especially useful for SMEs.
FreshBooks
FreshBooks is a cloud-based accounting software designed for freelancers and small businesses. It stands out for its ease of use, offering simple invoicing, time tracking and project management.
Advantages of accounting software
The advantages of accounting software include the following:
- Accuracy and efficiency: Reduces the risk of human error and speeds up accounting processes.
- Accessibility: Allows real-time access to financial information from anywhere.
- Integration: Facilitates integration with other business systems such as inventory management or payroll. Detailed reporting:
- Generates financial statements, cash flow reports and tax planning analysis quickly and accurately.
Recording of income and expenditure
Recording income and expenses is a key component of the business accounting cycle. Keeping detailed control of all transactions is essential to maintain financial transparency and comply with tax regulations.
How to keep accurate records
To ensure accurate record keeping, it is important to follow these practices:
- Record all transactions immediately after they occur.
- Regularly review and reconcile records with bank statements.
- Use accounting software that automates the process and reduces the possibility of errors.
- Maintain a backup copy of all records to prevent loss of information.
Asesoría Orihuela Costa: we take care of your company accounts
At Asesoría Orihuela Costa, we understand that keeping a company’s accounts can be a challenge. That’s why we offer comprehensive consultancy services, employment consultancy for businesses, SMEs and freelancers, ensuring that your business accounts are in the best hands.
In addition, our experts are here to help you with business accounting, ensuring that your business complies with all legal and tax obligations, and optimising your cash flow and tax planning.
Don’t let accounting become a burden on your business. Contact us and find out how our services can transform the way you manage your finances.
From implementing business accounting software to reviewing your balance sheet and financial statements, we’re here to provide you with effective, customised solutions.
Remember, trust Asesoría Orihuela Costa to run your business and take the worry out of your finances.
