Uses of Record Keeping and Accounting – Infographic
Many businesses give credit to effective bookkeeping (documentation of financial transactions and operations, receipts, etc.) and accounting (analysis and summary of bookkeeping financial data) for their smooth business operations. While others may be successful, some still use the two terms interchangeably, resulting in mismanagement of business funds and accounts.
For this reason, businesses who happen to have a hard time recording business transactions use accounting and bookkeeping services to help them with the monitoring of financial documents.
Should a company be interested to invest on such effective document management system, here are ways in which they are helped:
- Company Growth Rate and Profit Monitoring
Companies with good filing systems such as audit books, purchase reports, and financial statements can compare previous and current year performance to track business results. These are good times to evaluate the organization’s financial position and improve the future.
- Enable Budgeting and Planning
Part of a company being able to evaluate financial standing is its ability to plan and allot a budget to support the organizational needs. Accounting reports help company leaders in making finance-related decisions, as well as in making policies that increase the integrity of the business.
- Preparing Authentic Financial Statements
Aside from balance sheets, ledgers, and financial journals; some download free invoice maker apps to assist in preparing necessary documents and financial positions that need to be readily available anytime needed.
To learn more about bookkeeping and accounting advantages, check out this infographic by KIPPIN.
