Bookkeeping
in Perth, commonly referred to as keeping the books, is the process of keeping
full, accurate, up-to-date business records. Proper bookkeeping in Perth can
help businesses effectively manage cash flow, stay abreast of profits and losses,
and develop plans for the future based on financial trends. Furthermore,
accurate bookkeeping in Perth is required by both federal and local tax agencies. Bookkeeping in Perth involves
making a record of the monies received by a business as well as the monies paid
out. It encompasses money a company owes to vendors, employees, tax agencies,
contractors and any other individual or entity. Likewise, accurate records of
amounts owed to a company by outside individuals and organizations are also
recorded in a company's books.
Though necessary and beneficial to business owners,
the task of bookkeeping in Perth can be very time consuming. With no
exceptions, every monetary amount that is paid or received must be recorded.
Additionally, accuracy is of the utmost importance, making keeping the books in
a rushed manner a very bad idea. As business owners are often lacking in time,
many choose to hire bookkeepers to keep company records well maintained. A company's books are used to determine the amount of
taxes the company must pay. They are also used in preparing tax returns.
Sometimes, a tax agency may decide to investigate the information reported on a tax return or other type of tax-related document. In such cases, business owners
are required to present accurate records for the tax agency's inspection.
Failure to do so could lead to hefty fines, penalties, or in severe cases,
imprisonment.
