The importance of bookkeeping cannot be overemphasised, as it is a vital part of the overall success of any business — both large or small.
If you are a business owner, it is your responsibility to ensure that your business’s accounts and books are kept in good order and offer a full and open reflection of the financial health of your business.
So why is bookkeeping so important, I hear you ask?
Read on to find out our top 5 answers to that question.
- Tax obligations
By upkeeping good and healthy books for your business, you can make your annual tax responsibilities very easy.
When you have an up-to-date and organised balance sheet, profit and loss accounts and cash flow statements, fulfilling your business tax requirements is so much easier and causes less hassle and stress at the financial year-end.
2. Financial management
When you have your bookkeeping in order, you can e keep track of what invoices are due for payment easily while also knowing what invoices are owed to you by credits and should be collected.
This allows you to benefit from on-time payment of suppliers as well as regular and timely follow-ups of invoices owed to you.
These are two important elements to managing your cash flow which, as we all know, is your business’s lifeblood.
If you want to attract a stream of finance into your business through investment, then you need to be able to attract investors.
Prospective investors will ask about the financial health of your business and will want to see your books so having accurate and up-to-date books to present will be a major plus.
If you already have investors in your business, you have to report to them on an annual basis and having your bookkeeping in order will make this much easier.
4. Less stress
When you have a messy system of bookkeeping, the burden of this disorganisation can weigh heavily on you and can lead to increased levels of stress.
Running a business can be stressful enough at the best of times so why add further to that burden?
While you may need to invest time and money into ensuring that your bookkeeping is up-to-date, consider it an investment in your own peace of mind and clarity.
If bookkeeping isn’t your strength but you have recognised its importance, why not consider outsourcing the function? Hiring a professional Accountant Company that can look after your bookkeeping requirements leaving you to concentrate on developing and expanding your business as you wish.
Given all of the points above, it will definitely be worth the investment.
For more information on bookkeeping visit www.Regionaccountancy.co.uk/Bookkeeping