How can Bookkeeping help a Company in the Times of the Coronavirus?
Keeping track of all the transactions, financial or any other kind, of the company is very important for it to grow. With the knowledge of every transaction made, the management of the company will be able to predict the outcome of the decision they make on the business front and will also be able to chart a trend line for the future of the company. During the times of Crisis, the first thing to check is that if all the details of the transactions are noted in a correct manner. This is the work of a bookkeeper.
The job of a bookkeeper has become more crucial during the times of the COVID-19 as now the future of the businesses depend upon the correct recording of the transactions. An accountant will analyse the information and accordingly devise a plan for the future. This plan will be highly affected if even a single transaction is recorded in the wrong manner.
Thus the management of a company should take utmost care while availing the services of a Bookkeeper or an Accountant.
How Bookkeeping Can Help a Company
Here are some of the ways with which proper bookkeeping can help a company during the times of COVID -19:
1. Stay Updated and know about the latest Rules and Regulations
Since the bookkeeper has to mark all the transactions made by the business, it should do so diligently. The bookkeeper should arrange all the transactional data of the company according to the various reports which will be prepared using the collected data.
There have been certain changes in the way the reports are presented and the number of reports to be prepared by a company. A bookkeeper should keep itself updated by having the knowledge about the various rules and regulations which will be followed in the future. This will help the management to avail Auditing and Accounting Services accordingly.
2. Provide Easy Access to Financial Records for other Services
A bookkeeper will help in the collection of all the transactional data which will be required in the preparation of any report. This allows for easy access to data for the Auditors, which will be preparing the audit report of the company as well as the Financial Accountants, which will prepare the financial accounts of the company.
The preparation of the reports will allow the management to prepare better strategies for the future and realise any new trends in the business sector.
3. Help in Reducing the Tax Liabilities
One of the biggest benefits of availing the services of a bookkeeper is that availing the services of a bookkeeper can also be considered as a tax-deductible expense. An experienced bookkeeper can also help reduce the tax liabilities of the company as they know about the most common expenses in the business and which of them are tax-deductible.
4. Help in Reduction of other Costs
There is a big difference between Accountants and Bookkeepers the understanding of which can help reduce the total cost incurred by a business. In short, an accountant is a person who will analyze the data which has been gathered by the bookkeeper and helps in the preparation of the reports.
A bookkeeper focuses on the recording and organizing of the company data accumulated by all the transactions. If the management of a company is using the services of an accountant just to map and record transactions of the company, then they should consider removing the accountant and using the services of a bookkeeper which will provide its services at a cheaper rate than an accountant.
5. Bookkeeping Services will improve the decision-making skills of the Management
The role of a bookkeeper is pivotal in making decisions about the future of a company. If the bookkeeper records any wrong transaction knowingly or by mistake, then the company might have to face huge repercussions. A professional bookkeeper will double-check the data which is being recorded so that the accountant and the auditor will face no problem and will create the correct Accounting and Audit reports.
These are the five factors which if neglected, can cause a lot of harm to the company. this is why it is always recommended that a company should avail services from a reputed business consultant who will provide proper bookkeeping services.
If you are looking for trustworthy Bookkeeping Services in the United Arab Emirates, then you must avail the services of JAXA Chartered Accountants. JAXA is a reputed name in this business and has a lot of experience in the sector. They also provide various other services such as Accounting Services, Auditing Services, Payroll Services, and many more. These services can help the management to uplift the company and achieve maximum profitability. For more details on the services provided By JAXA Chartered Accountants, you can Contact Us. We will be very happy to reply to all your inquiries.
