every organization has some form of book keeping. Whether a big organization or a small organization, the bookkeeping Temecula CA important function for the company. From the initiation of a transaction to the end of the transaction, the information must be captured some how in the system.
There are many activities that are involved in this activity. They span from the initial stage of initiation of a transaction to recording and summary of these transactions at year end to make informed decisions. The accountants perform this role. Both large and small companies need book keeping functions for a number of reasons. They are
Fraud can be detected. Book keeping ensures there a prove that a transaction was done in the books of accounts. Having this books ensures that what is in the bank matches what has been captured.when doing bank reconciliations, then fraud can be unearthed. The reconciliations should be done regularly to ensure that fraud is detected early enough
A lot of decisions by management that relate to financials are based on the figures gotten from the accounting system. The manager would want to know if by raising the prices of good would help it reach break even, if by raising the pay of employees would have any effect on the financial position of the company. Effective accounting ensure seamless decisions are made.
Helps in cutting costs. Book keeping helps identify areas where there are greatest cost elements and also comes up with ways of cutting these costs. There are a lot of costs drivers in accompany and so if a company keeps its book well, they may identify these areas and come up with ways of cutting the costs.
Each country has compliance requirements for each company to file returns. The returns must be done based on the company's financial data entered or captured. Misstatement of this data can lead to compliance issues. Statutory audits for public limited companies are required to be audited and results published publicly. Effective book keeping helps achieve this obligation.
Forecasting is also very important for a company. This helps the company know what they put as priorities. Budgeting also is informed by past financial information which is gotten from the books of accounts. No period can attain the same costs or income so the variances can e explained with proper books of accounts.
It identifies errors and mistakes in financial figures. When Book keeping can be used to identify mistakes by way of paper and audit trail. When a mistake is discovered, it is easy to go back to the original documents of entry and trace the whole trail. Mistakes can be intentional or not intentional. Intentional mistakes mostly lead to fraud in a company.
The book keeping function must be seamless because this is the most area where fraud occurs. Checks must be done frequently and also segregation of duties done to reduce chances or irregularity. Internal auditors also ensure that financial controls are implemented and followed. Auditing these controls also prevents mistakes, fraud, loss of resources in the organization.
There are many activities that are involved in this activity. They span from the initial stage of initiation of a transaction to recording and summary of these transactions at year end to make informed decisions. The accountants perform this role. Both large and small companies need book keeping functions for a number of reasons. They are
Fraud can be detected. Book keeping ensures there a prove that a transaction was done in the books of accounts. Having this books ensures that what is in the bank matches what has been captured.when doing bank reconciliations, then fraud can be unearthed. The reconciliations should be done regularly to ensure that fraud is detected early enough
A lot of decisions by management that relate to financials are based on the figures gotten from the accounting system. The manager would want to know if by raising the prices of good would help it reach break even, if by raising the pay of employees would have any effect on the financial position of the company. Effective accounting ensure seamless decisions are made.
Helps in cutting costs. Book keeping helps identify areas where there are greatest cost elements and also comes up with ways of cutting these costs. There are a lot of costs drivers in accompany and so if a company keeps its book well, they may identify these areas and come up with ways of cutting the costs.
Each country has compliance requirements for each company to file returns. The returns must be done based on the company's financial data entered or captured. Misstatement of this data can lead to compliance issues. Statutory audits for public limited companies are required to be audited and results published publicly. Effective book keeping helps achieve this obligation.
Forecasting is also very important for a company. This helps the company know what they put as priorities. Budgeting also is informed by past financial information which is gotten from the books of accounts. No period can attain the same costs or income so the variances can e explained with proper books of accounts.
It identifies errors and mistakes in financial figures. When Book keeping can be used to identify mistakes by way of paper and audit trail. When a mistake is discovered, it is easy to go back to the original documents of entry and trace the whole trail. Mistakes can be intentional or not intentional. Intentional mistakes mostly lead to fraud in a company.
The book keeping function must be seamless because this is the most area where fraud occurs. Checks must be done frequently and also segregation of duties done to reduce chances or irregularity. Internal auditors also ensure that financial controls are implemented and followed. Auditing these controls also prevents mistakes, fraud, loss of resources in the organization.
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