Importance of concise accounting

Importance of concise accounting

Many small and medium-sized enterprises (SMEs) like to avoid accounting and billing. For many entrepreneurs, it is a task that detracts from the actual work: too time-consuming and too complicated! But accounting does not have to be boring and be seen as a necessary evil or annoyance. Rather, the bookkeeping can lead the company in the right direction at any time.

In this blog we show you why exact accounting is important:

1. Tax return at the end of the year

A clean tax return lists, among other things, all receipts and expenses of the financial year. As an entrepreneur you pay the corresponding profit tax on the calculated profit. If you manage your books correctly and have booked all expenses, the profits will be as low as possible and your tax burden will be reduced. Complete bookkeeping can save you a lot of money!

2. Sales tax pre-notification

As a company, you usually have to send your tax notification to the responsible tax office on a monthly basis. This billing must be submitted on time and be completed cleanly. In order to create a correct pre-registration, you must have registered all transactions.

3. Tax arrears

As an entrepreneur, you have a requirement to register all business transactions completely and chronologically. Your listing mustn’t contain any errors, otherwise you run the risk of the tax office making demands from you for tax arrears. If information is missing, the tax authorities estimate the missing numbers, which usually means you pay more than you need. In extreme cases, the treasury can even suspect you of tax evasion!

4. Controlling

You can analyze your business figures against the bookkeeping data and gain an overview of your business. With just a few clicks, you’ll receive reports on sales statistics or cost trends over the last few months. At a glance, it becomes clear which areas are profitable and which areas should be further developed. Early on, you can identify negative impacts and make operational changes. Controlling helps you proactively align the company and have control over the business.

Cloud coming

 

As you can see, proper bookkeeping is essential and should be high on your list of priorities. In order to fully fulfill the points, cloud solutions are the obvious choice.

Even small and medium-sized enterprises (SMEs) are already banking on online applications, as they can expect lower costs than on-premise applications. The advent of cloud applications in the daily lives of companies brought the flexibility to use the software everywhere. Anyone with an Internet connection has real-time access to their business regardless of time or place.

For you this means the data is always up-to-date and therefore all transactions are registered . Thus, you can prevent having to experience nasty surprises on the part of the tax authorities. You also have access to your data at any time and on the move, helping you with controlling and ultimately contributing to the growth of your business .

From the beginning, make sure to use good accounting software. Many providers, including Reviso, offer not only the registration in the program with the exact listing of transactions but also a ready-made interface to the relevant offices, whereby a finished document can be transmitted electronically. This saves you work and time!