Business Accounting P1,P2
P1
Why is it important to keep accurate financial records?
Financial records tell you how much income your business is generating and how it’s being spent on things like overheads and products etc. You can then create a profit and loss balance sheet, this is important so that your financial advisor can then tell you what is going good or what is going bad and from that he can direct you on what to do. If a business doesn’t keep it right with the bill then they cou8ld end up in trouble with the HM Revenue and customs (HMRC). If the business doesn’t record the cash transactions correctly then it cannot report its financial bills. The sales records will be updated regularly; this should give you a good idea on how the business is doing through sales, receiving payment, paying expenses and so on. The money going out seems to be going out faster than the money coming in then the owner or bookmaker should keep a close eye on the bank balance to ensure that they have sufficient funds for future transactions.
Record Transactions
Keeping an accurate and up to date record of your transactions is a very crucial part of maintain a healthy business. Either the owner or bookmaker will make an accurate record on what is coming in and out of the business such as money in from sales or money out through bills and expenses. If you don’t record your transaction correctly then you end up in trouble with the HM Revenue (HMRC).
Monitoring Activity
Records should be updated regularly so that you can have a clear look at how your business is doing in terms of paying your expenses, receiving payments and sale records. From this you can see if your expenses and so on are raising or falling. You should also keep an eye on the bank balance so you have sufficient funds for future transactions and day to day expenses.
Control
If you keep an accurate record of the transactions and closely monitor it then you can take better actions in controlling the balance between money coming in and
Why is it important to keep accurate financial records?
Financial records tell you how much income your business is generating and how it’s being spent on things like overheads and products etc. You can then create a profit and loss balance sheet, this is important so that your financial advisor can then tell you what is going good or what is going bad and from that he can direct you on what to do. If a business doesn’t keep it right with the bill then they cou8ld end up in trouble with the HM Revenue and customs (HMRC). If the business doesn’t record the cash transactions correctly then it cannot report its financial bills. The sales records will be updated regularly; this should give you a good idea on how the business is doing through sales, receiving payment, paying expenses and so on. The money going out seems to be going out faster than the money coming in then the owner or bookmaker should keep a close eye on the bank balance to ensure that they have sufficient funds for future transactions.
Record Transactions
Keeping an accurate and up to date record of your transactions is a very crucial part of maintain a healthy business. Either the owner or bookmaker will make an accurate record on what is coming in and out of the business such as money in from sales or money out through bills and expenses. If you don’t record your transaction correctly then you end up in trouble with the HM Revenue (HMRC).
Monitoring Activity
Records should be updated regularly so that you can have a clear look at how your business is doing in terms of paying your expenses, receiving payments and sale records. From this you can see if your expenses and so on are raising or falling. You should also keep an eye on the bank balance so you have sufficient funds for future transactions and day to day expenses.
Control
If you keep an accurate record of the transactions and closely monitor it then you can take better actions in controlling the balance between money coming in and