Importance of having an updated Business Balance Sheet

Hi and Welcome!!

You are Looking for a certified public accountant in Surrey!! Let me guess, you are one of the Businesses looking for accountants or Startups looking for accountants, isn’t it, and want to get your Business Balance Sheet up to date, Right. See, I am always right and here I would like to tell you that you have reached the right place. I will be helping you out in reaching on conclusion as to what should be done in the best way. Also, it is also not that easy to find a better place than here, so let’s begin.

Importance
Business Balance Sheet

You know this is the perfect time for this activity. As a Start-up, it is very important to keep your books up to date, because as per Management Accountants in London, fund management is always been very crucial, because for a start-up at every turn the surprise expenses are found waiting.

If you visit the Best accounting firm in surrey, they will tell you the importance of the Balance Sheet. With the help of it including other financial documents, you can keep an eye on your expenses and can have control over them. A Bookkeeper helps you in maintaining all records which when needed can be presented in the Board Meeting upon which you may take necessary actions.

A Start-up has to take many things into the Accountancy process, like Capex and Opex comprising of various functions like manufacturing, purchase, admin expenses, store, and daily in and out of material or product in order to ensure that nothing may get wasted and, machines, etc may be utilized on optimum levels.

In A start-up the statement of assets, liabilities, and capital on a particular date is its Balance Sheet. It helps in understanding the performance on the basis of assets and liabilities. As per Management Accountants in Surrey, the balance sheet tells everything about the business like the financial health, liquidity position, and business performance which is an essential document to obtain a business loan from Banks or private investors too. It helps in projecting the ability of Project Expansions and Unforeseen Expenses. It also indicates the funding type like Shareholder Equity, Bank, or Investor Fund. Accountancy in Surrey explains, what is accounting and what are Assets and Liabilities:

So, Accounting or accountancy is the compilation of financial information of any business and sharing the same with the business managers and shareholders. This compilation of information is generally being done on a quarterly basis and yearly basis. Broadly it is called the Language of Business.

Assets are the goods that a company owns having a real or physical value. They are further classified as current assets and non-current assets depending on liquidity type. Current assets include cash in hand, receivables, and stock. Whereas, non-current assets don’t have a high liquidity value and these cannot be converted to cash early or easily.

Liabilities are what the company owes to its debtors. They are also classified as current liabilities and non-current liabilities. Current liabilities are the obligations that the company has to fulfill in the coming year. Whereas non-current liability is long-term debt.

For easy understanding one can note the accounting equation, which is “Assets = Liabilities + Capital”, and broadly the steps involved are as, First we Identify and estimate the assets and liabilities, after this we Calculate the capital or shareholders’ equity, lately, we Prepare the balance sheet by listing out shareholder’s equity, liabilities, and the assets. Remember that the assets should be equal to the sum of the shareholder’s equity and liabilities. But this is for self-understanding only, please don’t stop Looking for a freelance accountant in London because a professional Accountant only can do this job perfectly. And you as a Business Owner, please don’t even think of doing it of your own, because you as a Start-Up cannot afford to have any compilation or calculation mistake, since it will directly hamper the bottom line of your business and may also disturb your Shareholder Equity partners or private Investors.

So I hope, by now you must have understood the importance of an up to date Business Balance Sheet, and hence now you must start Looking for a freelance accountant as you are also quite aware of the importance of an Accountant for your New Start-up. All the best!!

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