Why Does a Business Need Accounting and Bookkeeping Services?
Accountancy is the finance tracker of a business. It is the way through which a business communicates about its stability in the competitive world. Bookkeeping and accounting have made it easier for organizations to establish their financial grounds and to leverage the business potential to a great extent. These services help the organization to understand the financial insights of a firm so that it becomes easier to plan for future development. If we look into both the terms, they do find that they are different, and have different segments. Let’s have a look at them.
Bookkeeping and Its Types
When a transaction takes place in an organization after its incorporation, it is immediately recorded. This recording is known as bookkeeping. Now, it has got two types:
1. Single-Entry Bookkeeping
This type of transaction is recorded either as an income or an expense and is recorded in revenue and expense account.
2. Double-Entry Bookkeeping
Any business transaction has got two effects debit and credit that takes place simultaneously.
Accounting and Its Types
As we have seen bookkeeping is basically a recording of the transaction. Now, accounting is one step further to it. It takes the business transactions to the next level by interpreting, classifying, analyzing, reporting and summarizing the recorded data. There exist two types of accounting, namely:
1. Financial Accounting
This accounting embraces the information that has to deal with business stakeholders that takes place in the internal and external business environment.
2. Management Accounting
This accounting holds confidential information like profits made, cost of manufacturing, salaries paid, etc., that takes place in the internal business environment.
A business entity needs to maintain its records in a clear way so as to avoid any kind of misunderstanding or financial crisis. Every single day for any business starts and ends with financial transactions, so it becomes a mandate to keep a check.
National Board of Accounts and Auditors (NBAA) Tanzania
NBAA Tanzania is an accounting body established under the Accountants and Auditors Registration Act in the year 1973. It is a member body of International Federation of Accounts (IFAC) and serves to both public and private sector to support the financial stability.
Tanzania Association of Accountants (TAA)
TAA is an accounting professional standard that was established in the year 1983 as a representative body of all the professional accountants registered and working in Tanzania.
Its mission is to provide services to and on behalf of its members in the public accounting, industry, education, and government aimed at facilitating their professional and social development and promote public confidence in their services.
Income Tax Slabs in Tanzania
The income tax rate to be paid by individuals in Tanzania differ on the basis of division.
Individual Income Tax Slabs for Tanzania Mainland
|Income Range in TZS (monthly)
|0 - 170,000
|170,000 - 360,000
|360,000 - 540,000
|540,000 - 720,000
An annual income of TZS 2,040,000 is not taxable.
Individual Income Tax Slabs for Zanzibar
|Income Range in TZS (monthly)
|0 - 180,000
|180,000 - 360,000
|360,000 - 540,000
|540,000 - 720,000
An annual income of TZS 2,160,000 is not taxable.
Import Duty Taxes in Tanzania
The import duty rates under the Common External Tariff (CET) are as below:
||Import Duty Rate
|Raw materials, agricultural inputs, medicines
|Finished final consumer goods
|Machinery and spare parts imported by mining companies and used for their business activities
|Machinery, spares, inputs imported by companies and are used in oil, gas, and geothermal exploration
Tanzania Invoicing Requirements
Tanzania standard tax invoice includes:
- Suppliers name, address, contact details
- Suppliers VAT registration number and bank details
- Purchasers address, contact details
- Purchaser’s order name
- The word ‘Invoice’ or ‘Credit’
- Invoice number and date
- Currency as stated in the purchase order
- Specification of the goods to be delivered
- Total net amount
- Tax charged
- Total payable amount
Benefits of Availing Accounting and Bookkeeping Services
Accounting and bookkeeping services are one of the main pillars that develop an organization. As we have seen its applications, let’s have a glance at the benefits that an organization can avail by opting for these services:
Accounting presents a transparent picture in front of the organization that helps them to take crucial and important decisions.
Immediate recording of a transaction upon its happening acts as a time-saver.
3. Budget Creation
Clear book of accounts helps in budget control and can be altered at any point.
4. Easy Auditing
Proper management of accounting books eases out the audit process.
5. Recognition of Malpractice
Any kind of malpractice that takes place in the firm can be easily traced.
Strong and transparent accounting books results in enhancing the goodwill of the company to a large extent.
7. Expense Tracking
Every recording either results in income inflow or outflow or thus acts as a tracker tool for maintaining company expenses.
Business Setup Worldwide Accounting Services
Business Setup Worldwide has been dealing with company formation since its inception. At BSW we provide a wide range of accounting services to ease out the complicated incorporation services to help a business establish globally. Some of our services include:
- Preparation of bank account reconciliation statements
- Payroll check writing and administration
- International corporate and personal bank accounts
- Maintain real-time online bookkeeping flow
- Analysis of working capital, budget variance
- Corporate secretarial services
- Preparation and maintenance of international tax structure
- Analyze financial statements and reviews company performance
- Deals with underwriting agreements
- Maintain bookkeeping and financial records
- Secure accounting data servers
- Plan for legal tax exemption
- Audit reports, proper cash-flow management
Our core business is to help in company establishment. We understand the numerous obstacles that come in the way of business development, and that is why we exist. Our aim is to simplify this complex process of company formation. With a team of business experts, we not only deal with the incorporation process but we also sort the legal proceedings, accounting and taxation services that differ from country to county. While we take care of your firm’s accounting services, you can focus on the other business growth segments that become essential in the initial stage of any business.