If you are a business owner, then you will probably know that keeping your accounts up-to-date can be a challenging and time-consuming part of running the business. Indeed, every business must keep up-to-date accounting records for a variety of different reasons, while keeping the correct accounts will ensure you can monitor the state of your business at any time as well as comply with the legislation that is in operation in a particular area. Furthermore, keeping up-to-date accounts can help you to prepare your annual financial statements, while you can also identify where the income for your business is coming from. In addition, you can also keep track of your expenses as a consequence of creating a balance sheet as well as a profit and loss statement, while you can also understand your assets and liabilities as a consequence of creating up-to-date accounts. Moreover, if you want to remain in complete compliance with the government’s tax legislation in Indonesia, then you must ensure that you pay the correct amount of tax every year.
- Understand the financial state of your business at any time
- Prepare several health financial statements every year
- Identify where the source of your income is coming from
I. Understand the financial state of your business
One of the most important reasons that you must keep up-to-date and correct accounts for your company is that you will be able to understand the financial situation of the business at any time. Good financial records can help the senior management team to monitor the business while you can also understand how much profit or loss you are making as well as determine your assets and liabilities. By preparing up-to-date financial records you will be able to keep an eye on the progress of your business as well as comply with government legislation. However, if you require business accounting services, then you should take note that a number of management consulting firms can help you to prepare the correct financial statements for your business every year.
II. Prepare financial statements
Another reason that you must keep up-to-date and correct accounts for your business is that you can simplify your accounting procedures and prepare the relevant financial statements every year. Indeed, a balance sheet will identify your assets as well as your liabilities while a profit and loss account will show where your income is coming from as well as you if you have generated any amount of profit over a period of time.
III. Identify whether your income is coming from
Furthermore, keeping up-to-date and correct accounts for your business in Indonesia can allow you to understand your cash flow at any period of time. This is essential if you want to identify the most successful areas of your business so that you can make appropriate changes at the management level.
To conclude, if you want to make sure you understand the financial situation in your business at any time as well as prepare the correct financial statements that are required every year and pay the right amount of tax to the government, then you must ensure that your business keeps up-to-date and correct accounts at all times.