Today’s businesses are very competitive; everyone is fighting to expend their market share during good times and to survive during recession by cutting prices. How can they cut their prices and at the same time making some profits? Some of you may say just to get the cash in the business to pay committed business expenses like rent, employees and other necessary on-going costs and so on. I would definitely agree with you but this tactic is usually used to overcome short term cash shortfall during bad times and never meant to be a long term solution.
Accounting is the solution to achieve healthy profits and compete with other businesses. Accounting is a process of putting together all business activities in a report called business accounts. Some people refer the same report as company accounts. Company accounts provide information of how much money you have made for your business, known as sales and how much outgoings paid to run your business activities, referred to as business expenses and finally how much you were left with, called that profits. Based on these information you can project your future activities and make important decisions.
Believed it or not, people intend to do business with you are very interested to read your company accounts to assess how your business is doing and its future. For examples, if the banks intend to lend you money they would like to know you are be able to repay, your customers would like to know you can deliver good service today and you are not going bust tomorrow.
How do people assess your business performance? If your business is registered with Companies House, they can obtain your company accounts and other reports such as annual return, mortgage charge and so on from Companies House any time. Make your accounting records are up to date with the Registrar of Companies. People will tend to project you as unrelaible if they see your records are not up to date with Companies House especially if your company's status is proposing to strike off due to company accounts and annual return not filed.
My suggestion to all businesses is to keep and maintain proper accounting records so that you know how your business is performing from time to time. If you have no spare time to take care of the accounting side of things, I suggest you to appoint an accountant to do it for you as soon as you can.
Accountants at Concise, offer fixed fee accounts packages which include qualified accountants to take care of your company accounts, company tax return, VAT returns and also help you to create a filing system that suit for business. Feel free to contact Concise Accountancy to discuss your business requirements.
By Roby Pumnea, Concise Accountancy, 07 July 2010
