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Financial accounting
does not based on only about profits and losses, cash flow and management but
it is the management of the financial flow across the business and thereby
managing it to promote business growth and development. Throughout the flow the
accounting equation has to be maintained that is, Assets should be always equal
to the Liabilities plus Capital (Assets=Liabilities+capital).
Dealing with the
business accounting, the first principle that should be followed is to be aware
of duplicity. While doing business with financial amount one should be very
particular about calculation and maintenance. Capital plays a huge role in
structuring the business. Therefore saving that finance is important for the business
management and growth.
Guidelines
for the Management of Business Finance:
Accounting Information
of employees which play an important role has to be managed in a proper way so
that reports can be generated at the year ended easily without any hassles. It
is very important to set up proper business financial strategies which can be
followed so that the business can ultimately meet the agenda.
The various guidelines
that will help you to flow the cash in the proper direction and will help you
to understand the need of the proper settlement of the different business
financial accounting can be listed as follows:
Verification
of Financial Transactions:
Everyday business deals
with expenses, revenues, profits, and losses. It is important to keep path of
each and every financial transaction as these financial statements play an
important role during the tax statements and preparing the annual budget.
Therefore, the day to day transactions should be maintained while considering
the business financial services.
Maintain
Accounting Records in a simple way:
The financial
accounting system should be maintained in a very simple way. The simplicity
should reflect from the data and from the maintenance of the records. Accounts
deal with calculations, therefore greater difficulty will result into more
mistakes. Scheduling of the tasks should be maintained in order to imply
simplicity.
Revising
Billing Statements:
It is important to
revise the billing statements from time to time. It might appear that your
business is left with few payments. This should be ensured that you are paying
only those bills for which your company has received the services. In financial
business, you have to be very sure that you are not being cheated anyhow, that
could result into a big loss for your firm.
Check
the Invoices vouchers:
To control the extra
expenses of doing business for that Invoices are the financial statements that
can be reviewed to. These financial statements helps in understanding whether
you are paying extra to some business or you can get various services at a
cheaper rate or you can still manage some other companies to get the similar
services at a more effective rate.
Updating
with Taxation Rules:
While conducting own business
or you are associated with any services, it is important to pay the tax.
Especially if you are associated with any financial firm the taxation services
policies has to be remembered. The taxation rules changes after certain period,
in order to run the business the rules must be updated to the specialists. It
will not only help in managing the accounting book but also it will play a good
role during the audit.
Maintaining
Intelligibility:
It is important to set
the business goals according to the budget limit. The budget of the business
includes all the purchases and expenses made by the business. Whenever any
department plans for purchasing goods or any other raw material it has to be
approved by the higher officials. In the same way, after the purchasing of the
goods, a detailed slip should be maintained so that everyone in the
organization should have the idea what are the purchases have been done and how
it is going to help the organization economically.
Follow
Generally Accepted Accounting Principles:
For running the
business financial accounting services the accountant should follow the GAAP (Generally
Accepted Accounting Principles) policies. GAAP consists of standard principles
which should be followed by every accountant to run the business. For the
management of different accounts these principles can be adopted and drive the
accounting management in a new direction.
These are certain
principles that the accountant or any other business accounting services
Provider Company should follow in order to run the business ethically and to
meet the financial need of the organization. A systematic accounting procedure
helps the business to grow and thereby meeting the expected profit.