The origins of bookkeeping can be traced back to Mesopotamia. To keep track of their company, they implemented simple processes for tracking, counting, and auditing financial transactions. After thousands of years, bookkeeping and financial accounting continue to be as important in modern-day companies as they were millennia ago. From the earlier basic bookkeeping to the development of modern financial standards and frameworks, shear advancement in this field has enabled the accountants to record, and produce financial statements which are comparable, readable and understandable at a global level.
Bookkeeping – A competitive advantage
Bookkeeping keeps track of financial business transactions and generates financial statements on a regular basis. This data is then used to provide financial market analysis in order to increase results, profitability, and close gaps. In modern business environment where a competitive advantage can be a reason enough for your existence or elimination from the business industry, accurate bookkeeping can provide vision over the business transaction which is important to maintain or attain the competitive advantage over the business competitors. If certain shortfalls are overlooked over a longer period of time for any business, this blunder could result in loss deposited over a longer period.
Why to Outsource?
Rather than recruiting a full-time employee, businesses are increasingly turning to self-employed bookkeepers or financial service providers. The advantages of receiving services from a self-employed financial provider greatly outweigh the disadvantages. Hiring a service providing financial business firm can offer updated expertise on the substance over form, and ensure the value is significantly add in the business using modern techniques and recent advancements. Hiring an employee for professional bookkeeping can expose the organization to various legal and labour union risks which could in the end damage to organization. Employees are often covered by different legal regulations and, as a result, can legally corner the company in such circumstances such as contract termination, substitution, and so on.
Small Organisations and Bookkeeping Services
There has been an increase in the demand for small business bookkeeping services. Every company, no matter how big or small, has realised the importance of accurate booking. Hiring a skilled accountant for a small business can be difficult due to their large pay packages, etc. Many financial accounting companies have begun offering micro bookkeeping services to organisations. These affordable and flexible services provided to the small business is meeting the high demand of this trend and making it easier for the small business owners to keep a track on their business in affordable fees. These services provide a great value for the business because even at affordable rates the quality check and bookkeeping standards are ensure by the professional bookkeeping and financial accounting firms.
Continuing Improvement & Research
The revolution in this area, as in many other professional fields, is truly astounding. Bookkeeping has come a long way, but there is still much room for progress that will be filled over time. Many research and development companies have been working on the accounting process automation framework. Though the invention of Enterprise Resource Planning organisation was partial automation of accounting, now experts are working on producing a module which will automatically detect and record business financial transaction which minimum human involving result in a revolutionary and accurate manner. In short, though many businesses have not realized the importance of business bookkeeping yet most of them have and they are acquiring maximum benefit out of it.
For more information about how FBS Chartered Accountants can help your business with Bookkeeping, get in contact with us today call: 0204 526 5195 or drop us a line hello@finchleybusiness.co.uk
