Adequate bookkeeping is done by the following:
- Hard copies (paper documents) of unordinary transactions as well as on-going and routine transactions of a company should be kept
- Documents are to be divided into similar transactions or categories and kept together
- Correct information from documents must be recorded in accounting books periodically
Firstly, adequately recorded books and records can be strong fundamentals for adequate internal control placed in any company. They also become the elements for efficient and effective operation of the company. Moreover, well-maintained accounting records are good measuring tools to determine the reliability and relevance of financial statements.
In addition, adequately recorded books let you and your CPA to have efficient relationship to prepare tax returns and to successfully make plans to represent you or your company in the case of any government audits.
Lastly, adequate bookkeeping and tax return takes an important role when utilizing financial institutions or credit facilities such as banks and factoring companies. Well-kept records do more than mere record keeping. Rather, it becomes the foundation for a company to develop into a stable business. Therefore, an initial setup ought to be placed by professional with appropriate skills and knowledge.