In this article, we discuss 6 reasons why bookkeeping is important for your business.
1. Allows you to budget accurately
Bookkeeping will organise your expenses and income so that it will allow you to budget accurately and easily. You will be able to put a budget in place for any future expenses, meaning you will be able to save money and furthermore, allow your business to grow and develop.
2. Prepares you for your end of year tax
With bookkeeping, you will have all your financial information ready for the end of the year, without having to rush to meet deadlines.
3. Helps with organisation
Being disorganised could lead to a penalty or fine due to late or incomplete financial records. Keeping your documents and financial records organised will make it easier to find them and provide them to your accountant when necessary.
4. Business analysis and improvement
Bookkeeping is an effective way of managing your companies performance by knowing whether you have made a profit or loss. From this, you can assess your strengths and weaknesses and analyse how you are going to improve this going forwards.
5. Financial management
It allows you to take control of your finances as you can see any outstanding invoices owed by you or your customers . This can help to ensure you are paying your bills on time as well as ensuring you are receiving payment for your service/ product offering on time too.
6. A legal requirement
It is a legal requirement to keep financial records for your business. You should keep your business and personal expenses separate. Failure to do both of these could lead to the termination of your business.
Now you know the importance of bookkeeping, there is only one thing to do next and that is find yourself a bookkeeper. Six Wands Aspects Limited offers a bookkeeping service suitable for businesses of all sizes. Contact us today via our online contact form, or call us today on 0121 289 2080 to discuss your requirements.