What is accounting?
Accounting is the process of consolidating financial information to make it clear and understandable for those involved in owning a company, such as stakeholders and shareholders. The main goal of accounting is to record and report a company’s financial performance and cash flows.
Reasons why accounting is important
Keeping a record: detection and prevention of fraud
One of the biggest advantages of accounting is how it allows businesses to keep a systematic record of their financial information. Having up to date and accurate records is crucial to running a successful business. Without this information, owners would not know whether they are making a profit.
Keeping accurate records of a business’s finance is also used to detect and prevent fraud. This is done through internal control, which comes from a proper record of all business transactions. To do this a business must have an efficient and effective accounting system.
Budget planning
Budgeting is a key factor for any business. Planning a budget allows businesses to develop strategies, observe expenses and work towards making a profit. The ability to plan a budget comes from the keeping of previous records. This is made possible through the collection and maintenance of financial data by an accountant. With this information, business owners can form the basis for their planning and budget making.
Assisting decision making
Accounting plays a large role in the decision making of a business. The people involved with planning, organizing and running an organization, use an accountant’s findings to carry out their roles. Without these numbers, they would not be able to make the important financial decisions that lead to a successful business.
Decisions can range from deciding whether to expand their business; geographical or employment or making changes to how their business runs in order to see a positive change in efficiency. Without accurate accounting, business owners would not have factual data to assist their decision-making process.
Statutory compliance
Following laws and regulations is important for business owners and having a good accounting system ensures they can. Statutory compliance refers to the laws set out and enforced by the government that businesses and organizations must adhere to. To ensure these regulations are being followed, an accountant will address liabilities such as sales tax, pension funds, income tax, VAT and more. Failure to record and pay these liabilities in a timely fashion can lead to fines and possible imprisonment.
Evaluate the performance of a business
Financial records help business owners understand what is going on with their business financially and whether it is performing well. Up to date records allow business owners to keep track of expenses, find signs of potential financial loss and compare current data with previous accounting records.
Local and Global Statutory Accounting and Tax Services
Keeping control of accounting, bookkeeping and tax obligations at home and abroad is a stretch for any international business.
Our distinctive mix of expertise and technology is delivered through a worldwide network of wholly owned offices, with everything you need to build consistent, standardized global accounting processes, with rigorous local compliance at their core.
- Transactional accounting – based on primary documents (initial front-end data input).
- Direct tax – registration, preparation, review and filing of corporate tax, withholding tax, local or municipal tax and other taxes.
- Indirect tax – registration, preparation, review and filing of VAT/GST for both resident and non- resident registrations.
- Statutory and regulatory reporting – preparation of local financial statements, statistical and regulatory reporting.
Country-specific accounting and tax compliance requirements can be challenging for organizations operating across borders but we have the local knowledge to help your finance function complete as per your country specific compliance systems and processes.
How Stellar Group helps you
Stellar Group provides comprehensive accounting and tax services that ensure compliance with both local and international standards
We’re here to support you at every stage of your finance transformation journey. We offer a broad range of services, including transactional accountancy support, local statutory accounting and tax support, and accounting and tax consultancy solutions that can be tailored to your organization’s requirements.
Taking on large, complex projects can be a daunting prospect. Whether you’re expanding into new markets or transforming operations and structures, we can make the process easier by guiding you on the accounting and tax implications of your strategic activities. Stellar Group’s experts have the knowledge and understanding of local and international regulations to ensure that you have the support you need, as well as hands-on experience to provide practical solutions to complex challenges.