How to Maintain Business Accounting?

Any serious business is obligated to manage its accounting. Indeed, this represents the financial image of the company.

Good accounting management will allow the company to achieve its objectives while also maintaining a constant view of its financial situation. Ensuring good strategic management of the company and continuing to make a profit.

See also : How to Choose the Right Garage Door?

For all these reasons, we believe it is essential for every leader to know how to manage their company’s accounting.

Why keep accounts?

  1. In a company, accounting is a real-time evaluation tool. It allows for the collection and sharing of information related to economic activity and financial, material, and intangible assets.
  2. Its goal is to add value to the company and draw the resulting conclusions.
  3. Accounting allows for compliance with the obligation to maintain it, such as filing annual accounts.
  4. It is an analytical tool that helps to anticipate potential financial difficulties.

Companies are subject to certain legal obligations:

Recommended read : How to Defrost a Windshield?

  1. Record all financial movements of the company in a non-modifiable software
  2. Keep a record of it (supporting documents and invoices) for at least 10 years
  3. File their accounts each year, at the end of the fiscal year, with the Commercial Court (The balance sheet, the result, and the loss statement and annexes)
  4. Conduct inventories once a year

To do this, the bookkeeping must be regular, honest, precise, and transparent, supported by management software.

However, it is clear that accounting is the bane of all businesses. Managers abhor it. The key is to understand the concept and familiarize oneself with the right methods and to use a good accounting management tool .

There are two ways to manage your accounting. It can be managed in-house or by an external third party .

How to outsource accounting management?

External management of the company requires the presence of an accountant. The accountant performs all or part of the company’s accounting tasks.

In a letter of engagement, the manager must explain to the accountant the tasks assigned to them. Depending on their needs, this may simply involve the presentation of annual accounts or the complete bookkeeping of the company.

The two most frequently offered outsourcing options are:

  • Total outsourcing: managing all the company’s accounts from bookkeeping to the production of financial statements
  • Partial outsourcing: the company performs bookkeeping using accounting management software connected to its accountant, and the accountant reviews the accounts and prepares the annual balance sheet

When accounting is outsourced, the law only allows the certified accountant to keep the company’s accounts. They have a monopoly in this area.

Advantages and disadvantages of outsourcing

Using a certified accountant ensures the management of accounting within the company.

In this field, they are specialists in these tasks and control the current regulations. They will ensure that the accounting complies with the laws and that the company meets its tax obligations.

The company can hold them accountable when they fail to fulfill certain functions imposed by their code of ethics.

Another advantage of external accounting management is that the accountant can provide strategic advice to the manager for the well-being of the company.

It should be noted that outsourcing accounting to an accountant costs between 50 and 500 euros excluding fees per month. This figure varies depending on the volume of documents processed and the level of advice they provide.

How to manage my accounting in-house?

Managing the company’s internal accounting means that it takes care of all accounting tasks itself and organizes itself based on results .

The first thing to do is to designate the person who will take care of it. In small and medium-sized enterprises, this role is usually filled by the manager or assistant. They must be able to:

  • Select an appropriate chart of accounts for the company and customize it
  • Receive documents, perform bookkeeping, number and file accounting documents

    • .

  • Produce tax returns (VAT, CVAE, CFE, income statement, etc.)

    • and file them with the Commercial Court Registry

    .

  • To close accounts, establish final financial statements, open the following fiscal year, and record new entries

Advantages and disadvantages of internal management

When a company controls the internal management of its accounts, it directly supervises the preparation of its accounts and related tasks.

Furthermore, it can relay information more quickly and easily and link their accounts to their information systems.

Thus, the various departments of the company can use the same database to facilitate the integration of accounting.

It is always more cost-effective for a company to manage its own accounting. But it is true that when the manager is not specialized in accounting tasks, they sacrifice time that could have been invested in production.

Accounting software for your internal management: Sinao

Do you want to manage your accounting in-house? For this, as mentioned earlier, it is necessary to invest in accounting management software that will assist you in this goal.

However, some software is not very easy to handle when you are a business manager. Indeed, they are sometimes more designed for accountants than for entrepreneurs.

Fortunately, the Grenoble startup, Sinao, now offers a very user-friendly software designed by and for entrepreneurs. The cherry on top, it only costs a few euros per month!

With Sinao, you will be able to create your quotes and invoices, track your expenses by connecting to your business bank account, manage your tickets and/or expense reports, anticipate cash outflows, inflows, VAT… And Sinao is connected to your accountant. Indeed, they can access your account and monitor your management in real-time. Additionally, all your compatibility is exportable in FEC format every month.

Thanks to the online customer service available 24/7, you will never be alone with questions.

Don’t hesitate to test it for 30 days (no credit card required).

Tag : easy accounting software

How to Maintain Business Accounting?