Benefits of Book keeping for your business
Bookkeeping is often neglected which has a direct adverse effect on the business. Which can spell the difference between success and bankruptcy and can also literally mean thousands of dollars for your business.
According to CPA Australia, “Some businesses fail due to financial mismanagement while other has weak or no accounting records or books on hand”.
Better financial analysis and management
Cash flow management is one of the most important function for a business to focus.
Regardless of the total invoice you sent during a financial year, once invoices are delayed, no follow-ups on customer payments and falling out on supplier’s list of customers will eventually crash you down.
Bookkeeping with the help of a proper software can systematize it up from up-to-date follow-ups, invoicing and on time payment for suppliers.
Fulfilment of Tax Obligations
Bookkeeping keeps track on any information and documents in order to accomplish annual taxes for your business
You don’t have to stress anymore to find all those bills or try remembering expenses when tax time comes.
Tax returns are also made easier with an organized Profit & Loss, Balance Sheet and Cash Flow your tax agent will devote time in giving you sound tax advice instead of correcting entries in the financial statements.
Reporting made Easy
The process of reporting to your investors or stakeholders on crucial information about the financial status of the firm is much easier and accurate as and when required.
Business Planning is Easy
What you need is only the Balance Sheet and Profit & Loss to check if the company is on the right track financially, from there you can start your business planning so much easy.
Proper Record Keeping as Required by Law
Bookkeeping keeps record keeping properly. It makes retrieving process easy once an audit comes
To achieve all these benefits, you need to hire a Book keeper to do it and keep your financials intact and organized.
Benefits of hiring a bookkeeper for your business
Regardless of whether you’re a sole trader or a fast-growing startup with payroll tax, every business needs a bookkeeper.
Beyond the convenience of managing day-to-day finances, a good bookkeeper keeps your business on track and gives you visibility over your business’ cash flow.
While it’s possible to learn the bookkeeping basics, as a business owner, your time is best spent growing your business.
Bookkeepers Lets You Focus on Your Business
When it comes to business, there are many things you can effectively outsource but your passion and vision are your own.
Handing over the reins of your accounts to a bookkeeper gives you more time to focus on the things that will grow your business. If you’re bogged down in reconciling records, there’s going to be less time for sales, marketing, strategy, purchasing and execution.
Bookkeepers Prevent Errors
As innocent as they may be, mistakes are costly. Not only could you be recording the wrong information but misreporting any income or expenses could land you a fine from the ATO and leave you paying more than you should.
The benefit of having a bookkeeper is that your books are up-to-date, organised and most importantly – accurate.
Bookkeepers Keep Your Books up to Date
One of the key factors in running a successful business is cash flow. Without visibility over your numbers and profit, you’re mostly guessing whether you can afford to take the next steps to grow your business.
Bookkeepers Are Cost Efficient
Outsourcing your bookkeeping is usually more cost-effective than handling it in-house.
An external bookkeeper is not distracted by the comings and goings of your business, their sole job is to manage your books and keep your records organised and compliant.