Skip to main content

Reasons Why You Shouldn’t Let Your Accountant Keep Your Books

 


An accountant and a bookkeeper perform entirely different tasks. Bookkeepers manage your ledgers and ensure your accounts are balanced on a daily, weekly and monthly basis.

Accountants are tax experts and provide a high level report into your businesses performance. This is the reason why your accountant cannot keep your books as well as a bookkeeper.

Here are a few reasons why you shouldn’t let your accountant keep your books

  1. Not capable enough to understand the business

An accountant does not really have an idea of what is going on in your business on a day to day basis. Most business owners go to their accountants only during tax time which means an accountant gets to have a look at the company’s books only once in that entire year. During tax time, the most that your accountant will do is getting numbers to complete your taxes.

  1. They do not focus on the little things

A good bookkeeper will make sure that every detail of your accounts is kept well. But, an accountant will not be able to do much of a justice to the same job. An accountant’s job is to only look at the entire picture of your business and have an understanding of your tax liabilities and the changes that can be made to your tax liabilities.

  1. They may miss out on the larger trends

Accountants pay close attention to the finances of your business at the end of the year; this is treated as an advantage of appointing an accountant. If you have your accountant taking care of your bookkeeping as well, then there are chances of your accountant missing out on some larger trends of accounting while paying close attention to bookkeeping your numbers.

  1. It could be expensive

An accountant may charge you a lot whenever they do your taxes. Imagine paying the same charge to your accountant on a weekly basis. The cost per hour for your accountant is much higher than a bookkeeper. Bookkeeping is more labour intensive, therefore, hiring a bookkeeper will cost you much lesser with the same expertise as an accountant.

CONCLUSION

An accountant is very much necessary especially during tax time and they can also give you great advice regarding your overall business performance. But bookkeeping is a task that will be best carried out by professional bookkeepers. For information regarding accounting and bookkeeping – get in touch with us!aavana.in

Comments

Post a Comment

Popular posts from this blog

Is the LLP Registration Process the Best Option for Company Registration?

Image
Is the LLP Registration Process the Best Option for Company Registration? When forming an LLP, there are a few requirements that must be met. Will you be able to lawfully form and manage an LLP if and only if you can meet the following requirements? A limited liability partnership (LLP) must be formed by at least two people. There is, however, no upper limit on the number of partners. In the case of an LLP, capital is decided by the business’s needs and the members’ contributions to the partnership. The Stamp Duty on the deed is determined by the amount of capital. To start a business as an LLP, there is no minimum capital need. A resident of India must be at least one of the LLP designated partners. When an LLP’s turnover is equal to or greater than 40 lakh and its total capital contribution is equal to or greater than 25 lakh, its accounts must be audited. Reason for LLP Registration   Use a company’s operational ease and flexibility to your advantage.   Reduce the amount of paperwor
Read more

How to register for professional tax in Bangalore

Image
 How to register for professional tax in Bangalore We all must have come across the term ‘Professional tax registration’ somewhere or the other. But did you ever try to find out what exactly is this PT registration is all about? The next time you get your payslip, take a couple of minutes off to study the break-up of the deductions. You may come across the term ‘Professional Tax’. Do not panic or get confused with this term with Income tax. Both are altogether different terminologies like how a north pole and a south pole differ from one another. However, your salary slip may not mention professional tax because not all Indian states impose it. The states that impose the professional tax are Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telengana, Tripura, and West Bengal. Now in this blog let us know what is a ‘Professional Tax is all about? Professional tax is a tax imposed by the state government. Professional tax is
Read more

Documents of Registered Office for Indian Company Registration

Documents of Registered Office for Indian Company Registration  Registered office proof of the company stating if the property is rented/ leased,   Copy of the rental/lease agreement   Copy of electricity/water bill (business place)   In the case of your own property, a copy of the sale deed and electricity bill is sufficient   Copy of no objection certificate from the owner of the property
Read more