Part 4. How Do You Achieve Financial Freedom Without Putting In Extensive Effort?
Keeping track of your earnings and expenses lets you know where you stand financially.
I understand financial accounting can be challenging, but with the help of a few essential tools, it becomes easier to record your financial transactions.
Financial accounting can further be divided into two parts to make understanding easier.
Personal record keeping
Professional accounting service.
It would be best if you had both.
You can manage Some basic accounting with a few online applications, but you need professional accounting services for tax filing purposes and record keeping.
Personal record keeping helps you make a few financial decisions, but most importantly, it enables you to start keeping records of your finances.
Once you have some bare record keeping, you can help your professional accountant with the necessary data.
In this fourth part, we will understand the benefits of accounting and its importance.
Accounting helps us to keep track of our earnings and expenses.
“Accounting is the art of turning chaos into clarity and confusion into financial wisdom.”
– Michael Carter
Making personal accounting a habit
I found it challenging to keep my accounting data current when I started working. However, I became punctual in record keeping once I understood the benefits of maintaining a record and knowing where you stand financially.
Most of you also find it challenging and time-consuming to spend time on record keeping.
Believe me, once you cultivate a habit of record-keeping your finances, you will stand on better footing financially.
Ways to record your accounting entries:
Keep all the bills in one place.
Store all the data digitally and securely.
Try to record or write entries on accrual or when you spend or receive money.
Make a habit of a double-entry system; it helps you to know your assets and liabilities.
Invest some time in learning essential accounting tools.
Use Excel or any suitable accounting software for record keeping.
Track and evaluate your earnings and expenses every fifteen days.
Good record-keeping habits will make you a wealthy person and make a well-informed financial decision.
Why do you need good accounting services?
You can keep a record of your transactions and can do basic accounting. But it would help if you had an expert accountant for tax filing purposes and keeping your accurate data. An accountant can help you to know your finances well and what can be done for future solutions, if any.
There may be thousands of accounting software available on the market. You can do all the accounting entries easily in an online journal. You can use these types of online accounting software to keep your records.
You can also show all your documents to your accountant to make them easily understand and find your data. Make sure to do the final accounting with the help of an independent accountant and avoid difficulties later.
That's why I recommend finding a good accountant and leaving all worries to an expert.
“The best accountants don’t just see columns and rows; they see the roadmap to financial triumph.”
– Amanda Green
What to look for when finding an accountant?
Finding an expert accountant can be tedious, but it has become easier because of the Internet. However, considering a few tips can make all the difference in the long term.
Look for someone near your area so that they might be aware of the taxation rules in your state.
If you are looking for an online accounting solution, check if they serve your area.
Check if an accountant is certified to provide accounting services.
Going concerned: If an accountant or accounting service provider has been in the business for a long duration or is a new establishment.
An accountant needs to be a subject matter expert regarding all accounting subjects.
An accountant or accounting service provider needs to be reliable and time-savvy.
Find an expert accountant for long-term solutions to your accounting worries.
Keep your data secure and access them to evaluate your economic progress. You must keep your financial accounting data for at least 10 years.
Benefits of financial accounting
The benefits of financial accounting are numerous, apart from tax filing purposes.
It helps in evaluating your finances.
It shows you the road map for securing your future.
It is required to obtain a loan for various needs.
You can plan for your future.
It makes you aware of making an informed financial decision and investing wisely.
You can cut back on unnecessary expenses if they arise in the future by learning from your past data analysis.
You can save more if you know where you stand financially.
Make a habit of record keeping and shed your future worries by making well-informed financial decisions.
The Financial Weekly Newsletter will come back with part 5 next Saturday.