Gupta Accountants

It’s important that your accounts are accurate and up to date so you can draw up ‘true and fair’ annual accounts. Your accounts should be backed up with full and detailed records of all business income and expenditure, such as receipts, invoices and purchase orders, payments in and out, etc. Why you should keep records and documents Following careful record keeping procedures can also help you in prevent fraud or theft. Using a good record keeping system will keep you up to date and help you to: track income, expenses, debts and creditors apply for additional funding e.g. a bank loan or overdraft facility save time and accountancy costs If you are starting a new business it is essential that you get a proper record keeping system in place immediately. You can use various software’s for the maintenance of the books of accounts. Gupta Accountants is there to outsource you all need of the accounting maintenance and will report to you on time to time on the financial affairs of your business. Analytical accounting tools Analysing your financial ac- counts enables you to compare your performance against previous years and with its competitors. Ratios enable you to quickly compare relative values – e.g. two items on the balance sheet. Ratio analysis can also be applied to non-financial data. For ease of reference, ratios are often split into the following areas of common control:liquidity ratios – these are used to measure solvency and short-term survival prospects capital structure ratios – these measure the adequacy of owners’ funding in relation to long-term debt activity and efficiency ratios – these measure the operating efficiency of the business in non-financial terms profitability ratios – these measure overall profitability and how well the business is using its assets and covering overhead costs. Gupta accountants could provide the solution.