Accounting is also a profession containing persons having the proper education and learning to hold out these tasks. Mark Lizotte Massachusetts is also experienced in accounting and bookkeeping. He is above 25 years in this field. They provide Analytix Bookkeeping Services which is located at Haverhill, Massachusetts, USA.
Accounting is the documenting of financial transactions as well as saving, organizing, accessing, summarizing, and introducing the information in different records and details. It is an organized procedure for determining, documenting, calculating, identifying, summarizing, interpretation and connecting financial information. It shows profit or loss for a given interval, and the importance and characteristics of a firm’s resources, responsibility, and an entrepreneur’s equity. Accounting is identified as the language of business, and as such, it benefits management in several ways. It includes documenting financial transactions and obtaining them in reports.
Another essential fact is that such records, classifications, and summaries are made for both transactions and events. A transaction is any business interacting or work in which an organization unit is included which leads to modify in its financial position.
Some Important advantages of accounting are as follows:
- Complete and Systematic Record:
Accounting is based mostly on usually approved concepts and a technical way of business presentation of business transactions in guides of accounts. As such, accounting is a comprehensive and organized documenting of all business transactions.
- Valuation of the Business:
In the case of sales of a business enterprise or conversion process, accounting is a process of one business into another. Mark Lizotte Massachusetts provides more and more business or bookkeeping services for you with availability to a team. By accounting, the appropriate picture can be indicated in the Balance Sheet and as such the acquisition cost can be recognized. Balance Sheet displays the value of resources & responsibility of the organization which can be used to calculate its net value.
- Helps in Raising Loan:
For further more expansion, the business must have enough funds. In some cases, due to a scarcity of funds business can’t do well. In those cases, additional funds can be increased by taking a loan from some financial organizations. These financial organizations provide money on the basis of success and soundness of the business enterprise. The success and soundness can be measured by the Investing and Profit & Loss Account and Balance Sheet, the final results of books of accounts.
- Facilitates Audit:
Depending upon the sizing, dynamics, and type of business enterprise, documentation of books of accounts, known as examine, is compulsory. Audit certificate released by the auditor on the reports is a clean chit to business which establishes that there are no problems in the business organization.
- Effective Management:
Accountant allows proper opinions to the management. As such, it allows the management in organizing as well as the manager of several actions of the business enterprise. It also assists the management to assess the overall performance of the business enterprise and will take appropriate action to eliminate the weak points in the management.
- Helps in Decision Making:
Accounting information and transactions help a business owner in acquiring selections about his business enterprise like development, starting up a new department, ending down a loss-making division, etc. They also support him in illustrating up his future plans.
- Assessing the Financial Status of the Business:
The financial position of the business enterprise is viewed through financial statements. The declaration is well prepared at the end of the accounting year and demonstrates the correct position of resources and liabilities of the business on a specific date. As a result, it can help in determining the financial position of the business.
- Assisting the Performance of the Business:
One more advantage of accounting is that assesses the performance of the organization. Accounting maintains an organized and appropriate record of business transactions. On the base of these records, the Income Statement is well prepared and we are able to know the profit gained and the loss experienced by the troubled business.
- Facilitating the Sale of the Business:
The position report of the business enterprise shows the value of possessions and financial obligations of the business. We determine the net worth of the business on the basis of these statements. Accounting helps the calculations of account for which the business should be sold.
- Preventing and Detecting Frauds:
The appropriate and organized accounting technique and effective set up of internal examine protect against the leak of goods and cash. Especially, accounting helps in detectors of these losses and also fixes responsibility for it.
More than 25 years, Mark Lizotte Massachusetts is in the accounting and bookkeeping field. He provides the service starting off from bookkeeping to CFO level practical experience or bookkeeping techniques development. Accounting or accountancy practice is the way of measuring, handling, and communicating of financial information about financial entities such as businesses and organizations.