Below I will outline the pros and cons and benefits of full service bookkeeping.
What are the advantages of full accounting?
Despite the fact that full accounting is a very complicated way of accounting, there are a lot of benefits to be gained by using this method of accounting.
The undoubted advantages of bookkeeping are:
- obtaining accurate information on all cash flows and each transaction, allows to control and analyze expenses, costs and sources of income received,
- obtaining a full picture of the company's financial situation due to an accurate valuation of assets,
- facilitates the planning of future investments,
- data from the balance sheet and income statement allow the calculation of cash flows, which reflect the actual cash available,
- the possibility of ongoing monitoring of changes on the basis of accurate records of company assets,
- obtaining indicators helpful in taking actions aimed at improving functioning and development of specific segments of the company
What are the disadvantages of full accounting?
Full accounting also has downsides, and the most commonly highlighted are:
- Increased costs, due to the fact that bookkeeping is a difficult and complicated task and requires a lot of knowledge. This knowledge and experience is connected with hiring a professional accountant or an accounting office.
- The need to comply with the directives of the Accounting Act. This is also my task as an accountant.
To sum up, full accounting imposes much more obligations on an entrepreneur than simplified accounting. Nevertheless, their implementation does not mean that an extended form of revenue and expense register is only an onerous duty and higher costs - it has its advantages.
Greater accuracy and attention to detail allows you to better analyze the turnover of money in your business. With this information, it is possible to optimally plan expenses and investments and predict tax issues for the future. Full accounting also means greater transparency, which helps build trust in the brand, as well as attract investors and customers.
More and more conscious entrepreneurs are voluntarily changing the form of keeping accounting records to full accounting. Full accounting is voluntarily used by companies mainly because it gives the company's management a lot of information about financial processes taking place in the company. Thanks to financial statements it is possible to develop optimal budget and tax policy.