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Accounting & Bookkeeping

Accounting and Bookkeeping in Australia

Accounting Opens in new window is the process of tracking, auditing, and communicating financial information. Typically, this information is relayed to shareholders or company managers.

An accountant develops financial statements demonstrating monetary resources under company control. The best accountants communicate the most important information in a clear way.

Interestingly, this art dates back nearly 7,000 years to the Assyrian civilization.

Earlier accountants served as assistants for the businessperson, who was not able to remember all the information alone.

When joint stock companies were developed thousands of years later, this practice took on a new shape. Investors lacked detailed knowledge of each business and therefore needed detailed account information.

Modern accounting is considered "the language of business". This is because it is the primary method for communicating a business's status to many people.

Accounting & Bookkeeping Business

Like any other business, starting and running an accounting firm is challenging. If you, as a company owner, can afford your own accountant, that can be very helpful.

If you’re already into this profession, maybe it’s time to start looking for an accounting & bookkeeping firm for sale.

While you can use the best tax software to help do your taxes, it’s not always perfect. A skilled accountant will help you save good money and add real value to your current business.

Unfortunately, many company owners consider bookkeeping a necessary evil, but just such a firm or a self-employed professional can help you save a ton of money.

You can then use that money toward more growth for your company.

Additionally, bookkeeping provides more information on how you can better run your company. While the new language is somewhat confusing at first, it’s very helpful once you understand it.

An example benefit of accounting may be to examine customers that pay slowly. If you discover you have many who do just that, you could make the decision to take aggressive collection actions. Or, you could encourage customers to pay by offering discounts for paying quickly.

Another example may be if an accountant discovered diminishing profit margins. Then, when examining how much customers are paying, you learn the truth. For whatever reason, it was learned salesmen weren’t passing on the most recent price increases to customers.

When buying an accounting & bookkeeping business, keep in mind the real value it offers. If you're selling an accounting & bookkeeping business, now you can communicate the value to your prospect.

About the Author

This Wiki was written by Andy White, CEO of Biz Trader Opens in new window.