Accounting Services: As per IAS/BAS
Accounting or accountancy is the measurement, processing, and communication of financial and non-financial information about economic entities such as businesses and corporations. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators.
Practitioners of accounting are known as accountants. The terms “accounting” and “financial reporting” are often used as synonyms.
- Accounts development;
- Control account, error, and omission;
- Recording process development;
- Inventories valuation;
- Fixed asset valuation;
- Financial statements preparation and compilation;
- Business accounting, bookkeeping, and payroll support;
- Financial statements assurance reviews for loans and SBA compliance;
- Assessments of internal accounting processes and controls;
- Consolidation of the parent company and subsidiary financial statements;
- Foreign entity financial reporting;
- Multinational business base erosion and profit shifting;
- Performance and profitability analysis;
- Budget, projections, and forecasting;
- Recording income and expenditures;
- Business financial records and reporting reviews;
- Reconciling bank statements and providing cash balance reports;
- Invoicing your customers, posting collections, and aging accounts receivables;
- Preparing financial statements and other reports;
- All the international accounting standards explanation;
- Others (as per IAS / BAS);
Accounting services in Bangladesh has always been a significant tool for business to operate. Since the early ages of human civilization, accounting services have been used in various formats and stages of society.
Accounting services in modern ages, the area of accounting services in Bangladesh provided by PORTFOLIO Business Consultancy Firm Ltd as a prominent and renowned accounting firm in Bangladesh, ranges from simple tally books found in small grocery shops to huge multinationals and what not.
- Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information that can be used in making business decisions.
Why Is Accounting Important?
Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information that can be used in making business decisions.
There are three key financial statements generated by your records.
[ (1) The income statement provides you with information about the profit and loss
(2) The balance sheet gives you a clear picture of the financial position of your business on a particular date.
(3) The cash flow statement is a bridge between the income statement and balance sheet and reports the cash generated and spent during a specific period of time.
It is critical you keep your financial records clean and up to date if you want to keep your business afloat. Here are just a few of the reasons why it is important for your business, big or small!]
- Your financial records reflect the results of operations as well as the inancial position of your small business or corporation. In other words, they help you understand what’s going on with your business financially. Not only will clean and up to date records help you keep track of expenses, gross margin, and possible debt, but it will help you compare your current data with the previous accounting records and allocate your budget appropriately.
- Laws and regulations vary from state to state, but proper accounting systems and processes will help you ensure statutory compliance when it comes to your business.
- The accounting function will ensure that liabilities such as sales tax, VAT, income tax, and pension funds, to name a few, are appropriately addressed.
- Budgeting and future projections can make or break a business, and your financial records will play a crucial role when it comes to it.
- Business trends and projections are based on historical financial data to keep your operations profitable. This financial data is most appropriate when provided by well-structured accounting processes.
- Businesses are required to file their financial statements with the Registrar of Companies. Listed entities are required to file them with stock exchanges, as well as for direct and indirect tax filing purposes. Needless to say, accounting plays a critical role in all these scenarios.
- Business trends and projections are based on historical financial data to keep your operations profitable. This financial data is most appropriate when provided by well-structured accounting processes.
What Is the Purpose of Accounting?
Accounting is often referred to as “Language of Business”. It is a means of communicating financial information to different users for decision making. The main objectives of accounting are:
- The primary role of accounting is to maintain a systematic, accurate and complete record of all financial transactions of a business. These records are the backbone of the accounting system. Business owners should be able to retrieve and review the transactions whenever required.
- Business owners need to plan how they allocate their limited resources including labor, machinery, equipment, and cash towards accomplishing the objectives of the business.
- An important component of business management, budgeting, and planning enables businesses to plan ahead by anticipating the needs and resources. This helps in the coordination of different segments of an organization.
- Accounting assists in a range of decision-making process and help owners in developing policies to increase the efficiency of business processes. Some examples of decisions based on accounting information include the price to be charged for products and services, the resources needed to make these products and services, and financing and business opportunities.
- Using the accounting reports, business owners can determine how well a business is performing. The financial reports are a reliable source of measuring the key performance indicators, so business owners can compare themselves against their past performance as well as against the competitors.
- The financial statements generated at the end of the accounting cycle reflect the financial condition of a business at that time. It shows how much capital has been invested, how much funds the business has used, the profit and loss, and the number of assets and liabilities of a business.
- A common reason for small business failure is the mismanagement of cash. Accounting helps in determining the liquidity of a business which refers to the cash and other liquid resources at your disposal to pay off financial commitments. The information reduces the risk of bankruptcy through the detection of bottlenecks.
- Accounting helps business owners prepare historic financial records as well as financial projections which can be used while applying for a loan or securing investment for the business.
- By placing various checks across the organization, accounting helps in avoiding losses caused by theft, fraud, errors, damage, obsolescence, and mismanagement. The internal controls safeguard the business assets and avoid long-term losses.
- Law requires businesses to maintain an accurate financial record of their transactions and share the reports with the shareholders, tax authorities, and regulators. The financial statements and information are also required for indirect and direct tax filing purposes.