Accounting — Helpful Tips to Save Your Time and Money
A Complete Guide on Correct Back-Office Management
Accounting is the core of a company's financial management reflecting all points of the company's economic performance under certain unified parameters. It provides founders with a pile of constant data and may positively affect the decision-making process in the case of the holistic approach. Together with that, bookkeeping is a required operation by a government. It's needed to ensure that businesses fulfill their obligations and to collect the country's economic metrics for more relevant financial management.
However, accounting requirements differ from one business to another. For instance, public companies must perform a recurrent independent audit apart from common accounting. Such measures are required to provide investors with trustworthy data.
The Difference Between Accounting, Tax Reporting, and Management Accounting
Actually, all these metrics are almost the same but they show slightly different points of view. Let's observe these diverse perspectives:
standards for accounting process (these metrics report the same transaction differently)
taxation (these metrics show whether certain operation requires a tax payment, reporting, and at which rate)
business interest (taking into account different points, you'll better determine how exactly certain operations affect business growth)
How You Can Ease Up Accounting for Your Company
Don't spend your precious time on accounting, just delegate this process to a professional. Bookkeeping doesn't worth it, really. While your accountant will take care of this time-consuming and monotonous task, you'll be able to focus on your business.
Moreover, it's not a big deal to find an experienced accountant for a nice price on a freelance marketplace such as Upwork. When your future paper guardian is founded, all you are left to do is to provide an accountant with needed documents and information. Congrats — now you are one step closer to the finished report!
a Helpful Tip
Don't spend your precious time on accounting. While your accountant will take care of this time-consuming and monotonous task, you'll be able to focus on your business.
How to Find the Right Accountant for Your Company
Well, you might be a bit confused by the words: "Find the right accountant". Let's go over the most important things while evaluating one.
Check the qualification Firstly, a qualified accountant is supposed to show reliable experience in the professional area and have a specified list of services with clear prices. But most significantly, an accountant's approach to reporting and document exchange must fully suit you. The process will be at its best, if you will find a personal connection.
Not only bookkeeping but taxes too An accountant is likely to be your helper on the matter of taxation and finances, too. That's why it is vitally important for an accountant to be experienced in the legal field of the country where your company performs — despite EU countries tend to unify the accountancy standards, each country still has its own rules and regulations.
Get a sneak-peek on this screenshot and learn how the profile of a good accountant and a conversation should look like
The initial steps To evaluate your new accountant's performance, we advise keeping an eye on how they work during the initial stages. Primarily, a competent bookkeeper is supposed to request information about your business and the company's other data to estimate future reporting paragraphs. They can also ask to provide them with previous reports to go through the full financial history of your company. After that, an accountant explores each primary document, reviews previous relations with counterparties, requests a bank statement, and so on. Then you'd rather reach an agreement with the way and certain date of documents exchange.
Based on this comprehensive information, your bookkeeper creates an accounting entry (a special type of transactions reflection), adds new transactions' data, explores invoices, and prepares a future report. All of that whilst you just stay focused on what matters most and keep an eye on your accounting only once in a while.
However, both of you should create certain rules to have the most productive workflow: when you must download documents, how you're supposed to get notifications about the absence of any document, etc. These simple frameworks will help you avoid mistakes.
Invoicing automation is equally essential — it will allow you to streamline your busy workflow. But let's talk about it in the next section.