Searching and determining a good outsourcing company for your accounting and bookkeeping can be a pain sometimes - since there are a lot of choices out there. Well, glad that you have come to the right place. The good news is, here in iCount we are dedicated to providing personalized and most valuable virtual services to our clients from worldwide, yeah you heard it right - our services are not just limited to clients from KL or even Malaysia!
What Is the Importance of Accounting? Accounting is essential to running a business because it allows you to track income and expenses, and gain quantifiable financial information to make the best decision for your company’s growth. But before we jump into the main topics today, let’s review once again, what is accounting and bookkeeping and how they impact a business!
Bookkeeping and accounting may appear to be quite similar to a lot of people. While the truth is, both of them are actually serving a different purpose! Accounting covers much wider than bookkeeping. Accountants have bookkeeping knowledge, but they also have a variety of other talents that enable them to analyze, evaluate, and understand financial data. On the other hand, bookkeepers are responsible for recording and maintaining business transactions. They essentially prepare the data and provide the groundwork for accountants to move forward. Generally speaking, bookkeeping is concerned with recording financial transactions and is more transactional and administrative in nature. Accounting is more subjective, providing you with insights into the financial health of your company based on accounting data.
Accounting is the practice of keeping track of a company's financial activities which included summarizing, evaluating, and reporting these transactions to oversight authorities. Accounting financial statements are a brief overview of financial transactions over a period of time that summarize a company's financial activities. The main objective of accounting is to analyze and generate financial insights or recommendations of the business using the data recorded by bookkeepers. it is one of the most vital operation areas for a business in order to help the business owner in comprehending the financial implications of his or her actions, as well as providing data for predictions, business trends, and development opportunities. Take a look at the big picture, accounting actually covers a broader scope compared to bookkeeping.
On the other hand, bookkeeping is a subset of accounting that includes the process of recording all the financial transactions and most importantly maintaining and balancing current, historical, and general ledger accounts. With that being said, an accountant can be a bookkeeper, however, a bookkeeper does not possess the sufficient skill level or expertise to become an accountant. Managing a general ledger is one of the most important aspects of bookkeeping. All of a bookkeeper's records, costs, and receipts are kept in this document. A good bookkeeping is significant for a business as it provides the fundamental in order for the accountants to carry out their tasks smoothly and efficiently.
Accounting and bookkeeping are both critical aspects of any business. By consistently recording and organizing all the financial transactions in books of accounts, it helps to determine a company's financial condition. Only with an accurate and reliable financial data, the company is able to make the best decision that prevents asset misuse, at the same time maximize the productivity and revenues, thus improving overall management efficiency.
Accounting and bookkeeping always played a vital role in a business regarding of its size, and no business can go far without them. But how does them have something to do with your business? Without them, you will not be able to know the financial health of your business and how your business has been performing financially in recent. You might even struggles while making financial decision as your finance is such a mess that it cant provide you with useful insights about all the financial movements. Following are some reasons why accounting and bookkeeping is a must for your business:
Accounting and bookkeeping is important, without them it will be difficult for you to keep track of your financial transactions. By organizing all your finances properly and accurately, it informs you about all the profits and losses, and where have you reinvested them in. You can’t skip accounting definitely, nevertheless, it can be made simpler and quicker through outsourcing it to a trusted accounting firm or being automated using accounting software.
One of the most crucial tools for leading your company towards its success is a precise and reasonable budget. However, it can’t be achieved without a good accounting and bookkeeping process. Both budgeting and trend forecasting depends heavily on a reliable source of historical financial data, indicating how a well-structured accounting and bookkeeping processes can impact a company. Most importantly, a well-planned budget looks into future. It can certainly makes a difference by acting as the one of the best tools for you to review and monitor all the financial activities.
Filing of financial statements is a must for any businesses. But sometimes it can be really difficult to start with, especially when you have no idea on which part to start with. Your business's tax return will be easier to file if you maintain track of the financial records. Filing your financial statements is actually similar to gathering all your financial records. With bookkeeping, it ensures that all your financial records are well-organized on a daily basis which can take away ton of stress from your shoulder during the tax season. You won't have to worry about rushing for receipts and invoices since all of your records are correctly documented.
Is it time for expansion? Is it time to purchase a new machine? Well, the answer to this kind of questions usually differ. To be exact, it usually depends on your company’s finance. Accounting and bookkeeping helps you to determine whether the current financial status of your company is able to afford the costs needed for expanding your business. It is crucial as it provides useful insights about the company's financial data for the upper management during decision making and helps to prevent common mistakes for small businesses like overspending.
Poor financial management can often act as the biggest obstacle that stops your business from keep growing. With no reliable or accurate data to be analyzed, it is difficult to access your business performance thus making it harder to set a growth target for your company. However, with accounting and bookkeeping, you may now more precisely sketch out your business goals and accomplish development by staying on top of your finances and keeping a regular track of financial records.
Located in Kuala Lumpur, Malaysia, however, iCount offers a complete range of accounting and consulting services to not only local business owners but from different geographical areas. Our accounting and bookkeeping professionals are always ready to give their best in fulfilling the requirements of all our clients. Moreover, our web-based accounting solutions provide you with proper accounting automation specially designed to suit your needs while saving you time and money.
We strive to set ourselves different from others via our efforts to personalize our solutions as part of our commitment to providing more value to our clients. As a result, one of the main differentiating factors that set us apart from the competition is our unwavering dedication to developing bespoke solutions and value-added services!
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3A-1-13, Straits Quay, Jalan Seri Tanjung Pinang, 10470 Tanjung Tokong, Penang, Malaysia
23-5, Menara Bangkok Bank, Berjaya Central Park, Jalan Ampang, 50450 Kuala Lumpur
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