Objectives And Need For Accounting

Objectives And Need For Accounting

Accounting and bookkeeping came along with the involvement of humans in trade and commerce. Accounting is much needed to run the financial aspects of your business smoothly regardless of your size. Accounting plays an important role in growing any business. Accounting is the process of keeping the financial records of a business by recording, summarizing, analyzing, and reporting all the business transactions. It makes all a company's information easily understandable to stakeholders and investors. It helps them to assess the performance of the business they are part of. Accounting is of two types: financial accounting and managerial accounting. The main objective of accounting is accounting is to give an accurate report of an organization's performance. 

We all know that accounting services are important and necessary for all businesses, but have we ever thought about why accounting is needed or important? Let's try to answer this question.

What are the needs for accounting? 

  • Recording of transactions: Accounting is needed to record all the transactions of the business and maintain proper books to show assets, liabilities, capital and profit and loss. Up-to-date records help businessmen to compare current financial information to past data.
  • Profit and loss: Businesses are some to earn profits, and to know whether a business is earning profits, one must prepare a profit and loss account, which ultimately will show the results of transactions done. 
  • Tax Filing: One of the major reasons for accounting is the preparation of files of tax returns on income tax, sales tax, wealth tax, exercise duty, tax on dividends, value-added tax, import and export duties, and many more. 
  • Knowing the financial position: A businessman should always be aware of his business's financial position in the market. A statement called a balance sheet has all the information of the assets and liabilities of the company and thus helps in knowing the business's financial position. 
  • Necessary Information for financial Institution: When a business wants investment from financial institutions, they have to show the necessary information like sales, profitability, and financial position, which are there in accounts.
  • Payroll accounting: accounting helps maintain the records of all the employees through the payroll accounting management system. 
  • Healthy comparison with market competitions: Accounts have all data on sales, stocks, profits, losses, and expenses. This data of own company and other competitions helps a businessman to variances of the Business Activities and thus take effective control over the business. 
  • Information to Investors and employees: A creation of an account is needed to ensure investors' safety of their money and also ensure employees of the business growth, which ultimately will benefit them in an increase of income. 
  • Other objectives: Accounting information is also needed to fix the company's budget and to do an analysis, cost control, and decision making by referring to accounts.
Outsourcing “Accounting Services”

With the term accounting also comes "accounting services", which can be outsourced by any business owner. Accounting services are gaining popularity among businesses that want to reduce their overhead expenses and increase efficiency simultaneously. Also, it can provide you with comprehensive reports that increase financial data visibility and lead to informed decision-making. As accounting is a skilful service, it has become a source of income or a profession to provide accounting services to businesses and startups. And with time, it has become a booming profession, not just helping providers of accounting services. Still, it has also helped many businesses and startups get through the hassle of accounting and growing their business to a great extent.

 Especia is one of the accounting service providers that has been in this industry for 11 years and more to go with world-class service for businesses. It is a leading provider of startup bookkeeping and accounting services. It ensures that all your startup books are in order and management tasks are in check and helps you with highly skilled professionals who take control over managing tasks that aim for the company's growth. Especia allows you to outsource any segment of your startup bookkeeping or accounting work that you feel is time-consuming or beyond your capabilities. Let's look into the details of the accounting services provided by Especia:

  • Valuation Services: We provide you with developed valuation methodologies and consistently provide input to the Financial Accounting Standards Board and the International Accounting Standards Board as they develop implementation guidance and new financial reporting rules with an implication of valuation.
  • Accounting Services: We have experienced, and professional accountants who ensure that all client needs are met and your startup finances are in order. We are responsible for preparing the financial statements and tracking them from time to time. 
  • Secretarial Services: We provide you with Company secretarial services at an affordable price. Especia has been serving in this field for 11 years and now provides services in India. It has a committed team of company secretarial, Chartered Accountants, and legal experts who hold ample experience in providing services to various industries all over India. Our team has experience across vivid sectors and is highly determined to provide complete solutions for all corporate secretarial matters. We believe in providing high-quality accounting services for startups at an affordable price.

Get in touch with us today for professional and reliable startup online accounting services! We believe that our growth is in the growth of your business.

Conclusion

Accounting has always been like a bloodline to businesses. Proper accounting can make a huge difference in the growth of a business. It is a system that helps a business track down its assets, income, and liabilities, which further aids them in making the right decision for its business. And if one finds it difficult to manage the account of their business, there are options of outsourcing accounting services, which will let them make time for focusing on the growth of their business.

Contact Us for Outsource Accounting ServicesCFO ServicesESOP Services  in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114

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