Updating your accounts and making money

Actualizado: 21 jun 2021

When the majority of people who are not involved in finance professionally hear the word “accounts” they think of a nuisance of numbers that has to be done merely for legal obligations. Even many business owners see accounting as something they have to keep up-to-date with, but see no use in it other than legal. This way of thinking can often result in incidents such as outdated accounts.

If you want to be a good strategist, firstly update your accounts

However, what many business owners do not know is that if the information that accounts provide can be very useful for managing the business. As we already know, information is power, and accounting is the most important tool available in decision making.

The accounting department records all the economic transactions in chronological order, informs of the results. It allows the analysis of the situation and of the evolution of the company including forecast and finally it also helps to compar with other periods and with other companies from the sector.

Accounts management is fundamental for tax obligations; apart from being up-to-date, the information must be reliable and contain no errors. It is also very important to be thorough and detailed when it comes to doing the accounts and contribute to all the information available, and not only that which is necessary for presenting the annual accounts.

With the company’s accounting results it is possible to make forecasts for the future, know the percentage that belongs to creditors, know the inventory turns, if debt is being recovered on time, if debts are being dealt with, etc. In this way you will be able to change your business strategy on time, increase capital, reduce costs or take necessary measures to improve corporate results.

Ultimately, not keeping accounts up-to-date can generate losses and the payment of more taxes. Here, we want to help manage and help business owners make the best decisions for the company.For more information contact us at marketing@ivc.es.

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