Importance of Bookkeeping
Posted on 16th June 2020 at 17:02
Hiring a bookkeeper has significant benefits, including:
A thorough, dedicated bookkeeper will always keep detailed records up to date. This complete recording will not only assist you in supervising your business accounts, but will also be of great assistance once you need your financial statements — or once your company is audited — as this process will be much faster and much cheaper.
Eliminating Late Fees by Paying Bills Promptly
It is easy to get behind on paying bills and invoicing when you are juggling bookkeeping with running your business. A bookkeeper will help you get your bills in order—and make sure that they get paid on time.
Decreasing Your Accounts Receivable Turnover by Invoicing Effectively
Getting your books in pristine shape means you will be able to invoice more effectively and quickly. Whether your bookkeeper does the invoicing manually or sets up an automated system for you, you will be cutting down on the length of your invoicing cycle—and getting paid faster.
Even though you will need to wait for the accountant or the auditor to finish their reports to conclude official financial statements, you will always have an updated balance sheet to inquire about the current state of the accounts. You will be able to present these data to any interested party, providing additional confidence both in your work as a manager and in the company's health.
Eliminating Your Own Time Spent Bookkeeping
Hiring someone to do your books (whether that is full-time, part-time, or on a handful of occasions yearly) means you do not have to. That means you get back the time you were spending on recordkeeping.
Faster Business Response Time
When you have real-time information about the state of your accounts, you will be able to react quickly to any changes that happen to the market or to your business. You will know the extent of your resources and current expenses, providing you with accurate insight: is it the right time to act?
Understanding Your Numbers
Once you have a detailed recording and a better overview of the company's accounts, it is much easier to plan and predict the future. When you are confident in your data, you can solve issues quickly and you can grab any opportunities that present themselves, without having to fear miscalculations in the accessible data. Thanks to the overview of profit and loss evolutions in the balance sheet, you will be able to know exactly what to do and how much time you have to do it.
Better Tax Prediction
While Her Majesty's Revenue and Customs will demand an official financial statement from your company for the purpose of taxation, you will be able to predict the outcome more accurately if you have access to detailed balance sheets over time. With them, you can keep an eye out for trends in your company's business and be more confident in the amount of taxes you will be expected to pay at the end of the fiscal year.
Always Compliant with the Law
A good bookkeeper will always comply with the latest legal regulations and will make sure all your accounts and books are up to date with any recent legal changes. Because the bookkeeper holds himself or herself accountable for any work that they do, you can rely on them to clear any mistakes. This saves time and effort for the bookkeeper, which in turn saves money for the company.
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