What is the importance of accounting?

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    It is important to keep your financial records updated to ensure smooth functioning of your business. 

    Helps in evaluating the performance of the business 

    The financial records give a clear picture of operations as well as the financial position of small business or corporation. It helps in better understanding the financial status of your business. Accounting not only helps you maintain a track of your expenses, gross margin and income but also helps in allocating the budget properly by comparing the previous data. 

    Ensures statutory compliances 

    Proper accounting will help maintain statutory compliances when it comes to your business. Liabilities such as GST, income tax, pension funds and others will be properly addressed. 

    Non-maintenance of books and accounts is an offence punishable by law. If a company fails to abide by the statutory compliances, the company will be liable to a huge penalty. 

    Creating a proper budget and future projections

    A businesses financial record plays a crucial role when it comes to budgeting and futuristic projections. Previous financial data is used to provide the base of business trends. With proper financial records, it is possible to make business decisions concerning budgetary and the onset of future projects. 

    Filing financial statements

    Accounting Services  plays a critical role while filing financial statements with the Registrar of companies. Financial statements are required for stock exchange and also for direct and indirect tax filing purposes. 

    Financial statements build trust in a company. A company’s financial statements act as a base for investors to decide on whether to invest their hard-earned money in the company. 

    The balance sheet of a company can have a huge impact on the company. The value of assets varies from the time they were purchased. A certain number of revenue earned will be stated by the company. But how much of that amount is actual cash and how much of it amount receivable should be accurately stated. 



    Proper accounting outsourcing services will help you deal better with financial issues. Accounting requires accuracy and good quality work. When you decide on outsourcing your accounting services, you’ll find more time to work on the growth opportunities of your business. 

    At Aavana, we have a team of dedicated professionals who will work with your business’s accounting needs. You can count on us to render quality services that will best suit your needs. We also do online accounting services.

    Get your Startup accounting services & LLP Registration India today!!

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    For more details regarding accounting and tax services for startups, call us at +91-80-40909797 / +91-9900328729