Let’s face it! Bookkeeping is integral part of any business (small, mid-size or large). However, this accounting process is very often neglected. In fact, according to recent surveys, some businesses fail to make a mark mainly because of poor financial management, improper bookkeeping or having no accounting records/books at hand.
Have you been paying little or no attention to your books? Failing to balance your books can have a direct adverse effect on how your business performs. Here are the top five reasons why your business needs to get the focus back onto bookkeeping:
1. Improved financial analysis and management
Cash flow management is something that your business should start focussing on right away. Once your invoices are delayed, there will be zero follow-ups on customer payments. Falling out on the supplier’s list of customers will eventually crash you down. However, all this can be corrected with bookkeeping. With accurate bookkeeping, you can systematize your follow-ups and invoicing, while making on-time payments to suppliers.
2. Fulfil your tax obligations on time
Bookkeeping can help you keep a track on all the information and documents required to accomplish your annual taxes. When the time for tax comes, you will no longer need to rush everywhere to hunt for your bills or try to remember your expenses. An organized Balance Sheet, Profit & Loss and Cash Flow also makes filing your Tax Returns a lot easier. Your tax advisor can also finally give you some sound tax advice instead correcting incorrect entries in your financial statements.
3. Enjoy easy reporting to your investors
With regular and accurate bookkeeping, you will no longer need to worry about reporting to your investors and sharing the financial status of your company. From graphs to charts and the lists of data, you can easily present everything to your investor right from your accounting books. Continue reading