Bookkeeping; It should be noted that, under no argument can a company be based on assumptions of facts, since in this way there are no real references that land on a legible plane the reality of the economy and therefore its profitability, and it is that there is no another way to be able to land in a truthful way the budget and the projections of a company, than Bookkeeping attached to the reality of each one of them.
The study and application of Bookkeeping alert us to the possible risks in certain situations and clearly the possible advantages
However, Bookkeeping is a discipline described as the process of extracting and consolidating financial information from various companies, in order to detail it and refer it to reports that can accurately indicate its financial statements. Being its main objective to record and report financial transactions, financial performance and of course determine the solvency of the company as such.
It should be noted that Bookkeeping standards improve the reliability of financial statements. These include results, balance sheet, cash flow, and retained earnings. Standardized reports allow interested parties and shareholders to effectively evaluate the performance of a business, it is noteworthy that financial statements must at all times be transparent, reliable and accurate.
That is why Bookkeeping in a company is almost as important as the same goods or services that are marketed within it, and it is that this allows to know exactly what the real economic situation of the company is, which allows budgeting. everything that makes it up, and when we refer to everything, it is literally everything, since Bookkeeping allows clarity about; how many inputs, raw material, personnel, physical space, investment in advertising, number of suppliers, furniture, tools, strategic allies and other elements that make up the reality of the company, may or may not be assumed.
In other words, for a company to function properly, it is necessary to have a complete business vision, which indicates that it is not only necessary to have the required technical knowledge in order to execute the company’s own activities, but also to rely on Bookkeeping experts who have a complete visual of the business and its operation after the real, concrete and grounded figures, this undoubtedly allows controlling almost all the fronts that make up the fundamental factors of the economy, capacity and profitability of the company.
Bookkeeping is a discipline described as the process of extracting and consolidating financial information from various companies, in order to detail it and refer it to reports that can accurately indicate its financial statements
Where clearly one of the most significant factors is the control of Bookkeeping and the reality of the financial situation since these components are in charge of projecting the continuity and stability of the company on tangible and concrete factors.
It is noteworthy that Bookkeeping is responsible for grouping substantial techniques, which facilitate being able to take all the information, data and Bookkeeping movements that the various companies carry out. Therefore, subjecting all of this to Bookkeeping processes that allow the real financial situation to be observed and known with clarity and veracity, this also allows for a panoramic view of how the financial situation is with respect to past periods and clearly allows projections to be made to future, which includes the short, medium, and long term.
In addition to all of the above, Bookkeeping within companies allows us to understand if, within the financial and comprehensive management that is being given to the company, profitability is being obtained that effectively allows continuity and projection of the company as such, or if on the contrary, it is working at a loss, therefore it is necessary to indicate the importance of Bookkeeping within companies, and that is that, as already stated, Bookkeeping allows then to have a panoramic, concrete and real vision of the state of the company, within its advantages we can highlight then:
- A correct vision of the Bookkeeping in the companies allows to know the real value of the production, the service or final product, this in order to determine the value in which it should be marketed.
- It allows to know the general expenses that the company requires month by month to be active and in production, and how much is required to generate in dividends to be able to cover them and generate profit.
- Its study and application alert us to the possible risks in certain situations and clearly the possible advantages.
- One of the factors that is highly relevant is that, through the structure of the balance sheet and the income statement, decisive information is obtained on the current financial situation of a company, not on insipid assumptions or projections, among many other factors.
For everything expressed here, we can infer that Bookkeeping for a company is absolutely necessary, and that is that with a good practice in said discipline, it is possible to determine efficiently and conclusively, the true financial state of the different companies, as well as than the Bookkeeping statements, which allows real and direct access to the financial results of the commercial activity in a determined time. Therefore, it is, without a doubt, a fundamental pillar in the administration of a company.