Are you about to launch a new business? When setting up a new business, many think of how they will be successful in selling their products or services and reach targets, but they tend to overlook important aspects such as bookkeeping. This article will identify two of the most important functions to run a financially healthy business – bookkeeping and accounting, which are in a way similar but at the same time different from each other.

What is bookkeeping?

Bookkeeping allows you to record all your accomplished daily, weekly and monthly expenditures to keep up an updated track of how you are managing your finances. This will help any business, whether small, medium or large to know all the activities that are happening from and to the business. This will help you keep a company financially healthy and save you time filing information later when it will be quite difficult to remember all the details. Moreover, it will also make it easier to find the needed information when you are going through data for reference purposes such as when fulfilling tax obligations. This will also limit any auditing pains that might be faced when companies don’t do proper bookkeeping and don’t keep all documents in order.  

What is accounting?

Accounting is a more detailed system as financial transactions are interpreted, classified, analysed and reported upon to learn were the business is going financially. This will allow the business owner to take important business decisions in favour of the company as the owner and management will know, for example, the profit and loss of the company, liabilities and assets. This information will be gathered from financial statements such as balance sheets and income statements.

If you have a workload that doesn’t allow you time to keep all your books updated and have everything in order or don’t have an accounting department yet to handle all your needs, contact our partner company, Accounting Services Limited, to learn more about the bookkeeping and accounting services that they offer.

The professional and experienced team at Accounting Services Ltd is ready to assist you and your business by delivering numbers to you in a timely manner. You can get in touch with Ms. Charlene Sciberras on csciberras@fairwindsmanagement.net.