Accountants: Let Them Disclose Your Company's Accounting Facts

For all business organizations, including private and public limited companies, partnerships, maintaining yearly ended accounts is a necessity. There are many important considerations need to be discussed while preparing such financial statements. All companies are asked to prepare annual accounts for the purpose of filing of returns. To undertake such tasks, Accountants for Contractors are hired. It is significantly essential for these companies to submit their documents correctly at the right time. In case of any negligence, they will be liable to pay heavy penalties and other charges.

Maintaining annual accounts is a statutory obligation that must be fulfilled in accordance with certain accounting laws and standards. The accounts are prepared on the basis of pre-maintained accounting framework consists of rules and regulations that every company needs to follow. In accounting, two terms are commonly used, when it comes to maintaining accounts, i.e. Calendar year and Financial year. Calendar year starts from January and ends in December. Financial year, on the other hands, initiates in April and goes till March. Accountants for contractors usually close their accounts in March of every year.

It basically includes the period of 12 months that need to be served for maintaining yearly ended accounts. The financial year of a company is decided on the basis of an accounting reference period. The companies are restricted to obey the rules and regulations mentioned in the accounting framework. Their accounts are prepared on a yearly basis, showing each detail of the transactions happened in the previous year. A number of accounting statements are prepared, such as final accounts, trial balance, balance sheet, cash flow statements, and so on.

All these accounts are compulsory to prepare, to disclose the actual position of the business at the end of each financial year. This is done to check out what business has in the account at the end. The Accountants for contractors have expertise in undertaking such account preparation tasks. They are hired to disclose the relevant information on the financial status of the company, providing the details of profit and loss account as well as balance sheet items. The nature of accounting transactions varies in terms of monetary and non monetary.

The transactions that can be expressed in terms of money are categorized as monetary ones, such as expenses, salaries, etc. All other are non monetary transactions that are not to be recorded while maintaining financial accounts. The accounts show whether or not the company has made profits during the year. Apart from maintaining these financial statements, further tax returns are also filled to fulfil the tax obligations. Tax laws are different in each country, thus, it becomes necessary to hire professional Accountants for contractors to do the same.

The chartered accountants are well practiced professionals having complete knowledge of accounting principles. They maintain proper reports that provide a "true and fair" representation of yearly transactions. Many accounting firms are equipped with expert accountants, hire them to disclose your accounting facts and figures. Search over the web for more details.