Accounts Preparation Service Edinburgh
Allsquare Accountants Edinburgh provide a professional accounts preparation services for all types of organisations across a diverse range of clients
Collating accounts for a company allows its financial story to be pieced together, and it is a vital part of reviewing past processes and planning for future strategy. As such, it’s extremely important to pay careful attention to accounts preparation, regardless of the size of your business. We can happily thank the digital age for making accounts preparation more accessible. Even so, there is still is a huge number of people across all manner of industries that would be willing to admit that they are not overly comfortable with accounting and finance. So, it’s more important than ever to understand it.
The importance of accuracy
Whether you have profited or run at a loss, it is imperative that your accounts are accurate. There are several reasons for this. In many industries, it is a legal requirement that a company’s accounts have to be available for public consumption, so an accurate reflection of your figures is, at the very least, an absolute necessity. Financial figures also have a part to play when it comes to senior decision-makers investing in the future of a business, or looking at tackling issues that have arisen as part of a new company-wide strategy.
Necessary components – parts of the puzzle
Arguably the most important part of your accounts is the section dealing with a statement of cash flow. This will usually be for a set period of time (a month or year, for example). It deals with the movement of actual cash, rather than outstanding debts or credit.
Another financial document will also include details of profit and loss. This follows a basic formula of sales – cost of sales – expenses + total income – tax = profit or loss.
Finally, there will also be details of where your business is positioned financially, more commonly known as a balance sheet. This is where details of your assets and liabilities are documented, translated into financial terms.
Why does it all matter?
It is a fact that all businesses make decisions that are based on financial standing and previous figures that appear on the balance sheet. For those reasons alone, it makes sense to have a clear process in place that serves to streamline your company’s accounts preparation. It is understandably an area that can cause significant stress for businesses, particularly those of a smaller size.
If you’d like some advice or help with taking the stress and uncertainty out of accounts preparation, speak to Allsquare today 0131 343 1510.