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

Private Limited Company Registration by ACSPL

Image
  Private Limited Company Registration  by ACSPL What Do You Get After Incorporation Are you planning to register a company? Read about a few ways through which you can  Save Taxes in a Private Limited Company. Private Limited Company Registration At Affordable Rates Aavana Corporate Solutions will also help in online private company registration. We specialize in company registration with a wide range of business entities like Private limited,  One-Person Company (OPC) ,  Limited Liability Partnership (LLP) , and  Public Limited Company.  What’s impressive is that we offer all these services are provided at cheaper rates without compromising on the quality. Contact Us Trust our dedicated professionals to get your  Pvt ltd registration  done on time.  Get in touch  with us today and get a  FREE  consultation! Count on us to handle all your  Accounting  and  Taxation  services as well
Read more

Compliance under Provident Fund

Image
  EPF is generally a scheme that is introduced to provide wider benefits for the employees on the completion of their employment. Every company that employs 20 or more employees falls under the EPF scheme. Here is the compliance checklist under EPF Act Eligibility Any person employed for work at an establishment or by a contractor in or in connection with an establishment and drawing a salary of Rs 15,000 per month is eligible under the EPF Act. The salary is calculated as basic salary and dearness allowance. Rate of contribution Employer – 12% Employee – 12% 1.6% to the central government Pension Fund All employees who fall under the Provident Fund become a member of the Pension Scheme. If a person earns Rs 15000 per month, 8.33% of the basic salary is contributed towards the pension scheme from the employers share of contribution. A minimum contribution of ten years is required to receive monthly pension. Compliance Checklist Employers PF dues – 15th of the following month Employ...
Read more

AFTER INCORPORATION OF A COMPANY WHAT ARE THE STEPS TAKEN

Image
 AFTER INCORPORATION OF A COMPANY WHAT ARE THE STEPS TAKEN After the incorporation of the company, there are a few compliance’s that need to be done before 30 days from the date of incorporation. However, other requirements need to be done on whether or not in 30 days. These compliances are regulated by the Registrar of Companies. Any violations of such compliances will cause further problems and attract penalties. A few steps that need to be initiated after the incorporation of a company are mentioned below Company name board After the incorporation of a company, it is important to have a name board for the company and needs to contain the following details Name, registered office address, CIN number, GSTIN Number, etc. Letterhead of a company Letterheads help in better communication between two parties. For businesses of all sizes, be it individual business, a small company, or a large corporation, a letterhead must be used by all. Print the below-specified details on all busines...
Read more