{"id":39400,"date":"2022-10-17T12:00:17","date_gmt":"2022-10-17T12:00:17","guid":{"rendered":"http:\/\/localhost:8888\/cregital\/disha\/?p=39400"},"modified":"2023-09-28T13:23:06","modified_gmt":"2023-09-28T13:23:06","slug":"importance-of-proper-accounting-systems","status":"publish","type":"post","link":"https:\/\/msmehub.org\/staging\/6671\/importance-of-proper-accounting-systems\/","title":{"rendered":"Importance of Proper Accounting Systems"},"content":{"rendered":"\n<p>A proper accounting system helps business owners learn, understand, and properly record their business transactions. Times without number, business owners complain of too many things including customers debts, thefts by employees, understating available stock, connivance of employees with customers to defraud business and excessive levies by government, which leaves them with no profit. All of these are preventable with proper accounting systems.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><span style=\"text-decoration: underline;\">Different Forms of Accounting Systems<\/span><\/h3>\n\n\n\n<p><strong>1. Paper Recording System<\/strong><\/p>\n\n\n\n<p>This is a system of accounting that involves keeping the records of business transactions using different note books such as cash, debtors, creditors, assets books and general ledger. These books are prepared by an accountant who ensures that the accounting system is in line with the business. This means that the books of a fashion enterprise will be different from that of an <a href=\"https:\/\/msmehub.org\/staging\/6671\/trending-opportunities-in-agribusiness-in-nigeria\/\">agri-business<\/a>. The limitation of the paper recording system is that it consumes time, especially when you have large volume of transactions.<\/p>\n\n\n\n<p><strong>2. Offline Recording System<\/strong><br>An offline recording system entails using an accounting software downloaded on your laptop or desktop. This is free but you can only access your accounting records only when you&#8217;re with the laptop\/desktop on which it&#8217;s downloaded. Some of the accounting software are Accounteer, Manager, Sage, QuickBooks, Zoho Books etc. Also, offline recording system can be done using Microsoft Excel Spreadsheet. The limitation of offline recording system is that you can only access your records on the gadget (s) you downloaded the software.<\/p>\n\n\n\n<p><strong>3. Online Recording System<\/strong><br>This is the best recording system. Once it is installed, you can access your accounting records anywhere as long as you have an internet connection. However, it is not free. You can opt for the monthly or yearly subscription fee. It also comes with unlimited storage space. Perhaps you don&#8217;t know what software to use, Accounteer is a leading Nigerian accounting software that is easy to use and affordable. <\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><span style=\"text-decoration: underline;\">Importance of Accounting Systems<\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">In the business world, every entrepreneur regardless of the nature of their business should have some knowledge of an accounting systems. Below are their importance:<\/p>\n\n\n\n<p><strong>1. Proof of Receipts and Payments<\/strong><br>Proper accounting system helps business owners know when a debt is due for collection or payment. This forces owners not to rely on their memory alone. That means they only pay or collect what is due, no more or less.<\/p>\n\n\n\n<p><strong>2. Financial Position<\/strong><br>Most times, business owners believe they&#8217;re doing well in business because of sales or cash at hand. But, the financial position of every business is determined over a period of time, after all expenses have been deducted and profit calculated. Accounting systems handle these processes seamlessly, thereby reflecting the financial position of a business at a glance. <\/p>\n\n\n\n<p><strong>3. The Ease of Filing <a href=\"https:\/\/leadership.ng\/knowing-what-taxes-to-pay-as-small-business-owner\/#:~:text=The%20tax%20is%20charged%20at%20two%20per%20cent.&amp;text=This%20is%20a%20tax%20payable,to%20the%20relevant%20tax%20body.\">Taxes<\/a><\/strong><\/p>\n\n\n\n<p>Proper accounting systems will help you collect Value Added Tax (VAT) from your customers and pay your Company Income Tax without stress as at when due.<\/p>\n\n\n\n<p><strong>4. Access to Finances<\/strong><br>With a proper accounting system, you communicate the state of your business confidently to stakeholders, employees and potential investors because the information can be verified. This opens up the window for grants, loans and investors.<\/p>\n\n\n\n<p><strong>5. A Means to Control Business<\/strong><br>You cannot be in control of your business if you don&#8217;t know what is happening. Understanding your numbers is being in control of your business. With bad accounting systems or none, a company is flying blind. The New York Times rates poor accounting as the 4th reason, out of ten, why small businesses fail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><span style=\"text-decoration: underline;\">Other key points to note:<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to Federal Inland Revenue Service (FIRS), failure to keep proper records and accounts, is an offence punishable under the law.<\/li>\n\n\n\n<li>Anybody can learn proper accounting system, regardless of educational background.<\/li>\n\n\n\n<li>In general, it is written; \u201cbe diligent to know the condition of your flocks\u2026\u201d This is not a piece of advice but an instruction. Proper accounting system is a \u201cmust learn\u201d because your flock is your business.<\/li>\n<\/ul>\n\n\n\n<p>Finally, modern society would be helpless and achieve less without proper accounting systems. <br><\/p>\n\n\n\n<p>No business can survive for a long time without them. Just knowing where your business stands financially is of great importance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PROPER  ACCOUNTING  SYSTEM  RE&#8230;<\/p>\n","protected":false},"author":1175,"featured_media":42641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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This firm is dedicated to supporting entrepreneurs in their efforts to minimise losses and maximise profits. Chukwuemeka is a certified Accountant proficient in utilizing Intuit Quickbooks, a robust cloud-based accounting software. Beyond his involvement in Countsystem, he also holds a Directorial role at Pleasant Harvest Limited, an agricultural entity specializing in rice processing and sales. Notably, Chukwuemeka is a frequent guest on Afia TV's Eastern Business Report Show, where he shares his insights. His extensive and diverse professional background has equipped him with valuable experience. He has held roles in customer service at the Regional Business Unit of Nigerian Breweries Plc, served as a Customer Service Representative at the now-defunct Diamond Bank Plc, acted as the Principal Partner at Prudential Auditors &amp; Consultants, and managed the State operations at Chijgz Resources International, among other positions. Chukwuemeka's dedication is evident in his passion for nurturing micro and small businesses, fostering their profitability and sustainable growth. His ultimate goal is to guide these enterprises towards global relevance, cementing their place on the international\u00a0stage.","sameAs":["https:\/\/www.countsystemng.com","https:\/\/www.Facebook.com\/ChukwuemekaLivinusAyogu","https:\/\/www.instagram.com\/chukwuemekayogu","https:\/\/www.LinkedIn.com\/ChukwuemekaLAyogu","https:\/\/x.com\/https:\/\/www.Twitter.com\/ChukwuemekaAyo1"],"url":"https:\/\/msmehub.org\/staging\/6671\/author\/chukwuemeka-ayogu\/"}]}},"_links":{"self":[{"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/posts\/39400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/users\/1175"}],"replies":[{"embeddable":true,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/comments?post=39400"}],"version-history":[{"count":5,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/posts\/39400\/revisions"}],"predecessor-version":[{"id":46076,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/posts\/39400\/revisions\/46076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/media\/42641"}],"wp:attachment":[{"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/media?parent=39400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/categories?post=39400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/msmehub.org\/staging\/6671\/wp-json\/wp\/v2\/tags?post=39400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}