Accounting and Bookkeeping form the base of any organization. If the accounting functions are not properly done, the company may have to face dire consequences. A small business with less number of employees may afford not to have any specialized person to handle the accounting functions of the company but as the size of the company increases, the need for such professional also increases.
In recent times, the number of businesses being setup in Switzerland is gradually increasing and due to this, the need for accounting and bookkeeping is also increasing. Accounting helps in keeping track of all the transactions of the business which in turn allows the proper allocation of resources to the appropriate and suitable segment of the business. This makes accounting and bookkeeping one of the most important and core part of the business.
Let’s have a deeper understanding of what is accounting and bookkeeping and why is it requires in Switzerland.
Accounting and Bookkeeping Meaning
Bookkeeping and Accounting are two different functions but still, people confuse between these two and use them as alternatives for each other. This is mainly because of both accounting and bookkeeping deal with financial data and requires at least the basic knowledge of accounting.
Bookkeeping can be understood as recording the financial transactions or any information which would affect the business. Bookkeeping is very important because if not done properly, there would be no transactions to make the final financial books of the company.
Accounting is the process of recording, storing, analysing and presenting the financial data. This data is gathered by the bookkeeping process. After the accounting process, the processed data is utilized to form the three basic books of accounts namely Balance Sheet, Profit and Loss Account and Cash Flow Statement. Accounting is a bigger process and bookkeeping forms a part of this elaborate process.
Advantages of Accounting and Bookkeeping Services
Using Accounting and Bookkeeping functions instead of each other should not be done as it is a very wrong process. Both of these services have a different process and the end result is different. The accounting and bookkeeping services offer the following benefits to a company:
With the correct data and the correct analysis, we would be able to form a budget for the company to follow in the next financial year. This budget would form a guideline for the company according to which the company can allocate its fund properly to the segment of the business that requires it the most.
2.Security of the Company
Proper bookkeeping and accounting will help us find the different flaws in the books of accounts of the company. According to these activities, we can take any remedial measures to stop the present fraudulent activity and prevent such activities from happening altogether.
A snapshot of the company’s financial health will be visible after conducting the proper accounting and bookkeeping functions. The three important books of accounts will help you to compare the previous report with the present report and thus take any remedial actions to change the situation in the future.
The bookkeeping will collect the data which would then be converted into a report. The proper analysis of this report would help take important business decisions for the company which would, in turn, enhance the future of the company.
If all the data are present at a single place, it would take less time and effort to analyse the data and make decisions. This quickness is a very huge requirement for the companies in the present day because to adapt to the dynamic business environment, a company needs to be flexible enough to change its plans according to the environment.
Following the accounting and bookkeeping process will help in the filing of the taxes as all the documents would be correct and very easily accessible.
7.Betterment of Cash Flow
The routine recording of revenues, expenses, liabilities, and receivables, will allow you to track when your customer and vendor invoices are paid. As a business, you want to ensure that your customer invoices are being paid in a timely manner.
It is because of the above-stated benefits, it is not possible for a company to thrive without accounting and bookkeeping functions. The size of every business increases with time and as the business would increase, so will the complexities in the accounting functions. So, it would be a great decision if after setting up a business in Switzerland you could hire the services of a firm which would take care of the accounting functions of your company.
Business Setup Worldwide is a firm which would handle all your accounting problems and will help you and your company to reach the pinnacle of success. They also have a number of other services such as Tax and Visa related services. To find the details on the various services provided do contact us, we would be happy to help.