There are many reasons why your business needs a bookkeeper, from efficient budgeting to preparing for tax returns. A bookkeeper is key to running a successful business and can provide crucial information to inform business decisions and growth.
Here are five reasons why bookkeeping is important.
#1 Full financial management
Managing company finances is no small task. If you have tried to manage them on your own, you will know that there are many different aspects you need to think about and deadlines you need to meet. A bookkeeper will typically manage all financial aspects of your business for you and has specialist training in order to do so, therefore reducing the burden. A bookkeeper is responsible for recording accurate financial information, bank reconciliation, monthly financial reports, creating, sending, and chasing invoices, managing accounts payable and payroll, and much more.
#2 Organised records
Businesses of all sizes cannot afford to make any financial mistakes. Financial mistakes can have a detrimental impact on businesses, especially if they are tax-related. Staying on top of your financial responsibilities can be difficult when running a business, as there is a lot to think about. A bookkeeper maintains accurate and organised records, which means you can easily locate any financial information needed and trust that it is correct. Nowadays, bookkeepers may also utilize a platform like OneStream Software to assist them to keep track of all of their accounts.
#3 Efficient budgetsBookkeepers keep your income and expenses organised, which makes it easier to review your resources, budget for future costs and taxes as well as plan for your business growth because it takes all the guesswork out for you. A bookkeeper also analyses your finances to ensure your business can meet tax and legal obligations, as well as a good cash flow to pay employees and suppliers. Without a good budget, your business may not function adequately.
#4 Prepare for tax deadlines
Tax returns tend to be a daunting process. A bookkeeper is educated on taxes and will organise all your financial information and budget accordingly for tax requirements, ready to submit your tax returns. This means meeting tax deadlines with ease, and less risk of financial penalties.
#5 Set accurate targets
Setting targets and goals is vital if you want your business to grow. With mismanaged or inaccurate financial records, it can make it hard to plan the future of your business, or you risk your plans failing. This can be disappointing, to say the least. However, with a bookkeeper, you will have accurate records and data to analyse, which can play a huge role in planning for your future and setting achievable goals. Bookkeepers will also provide an analysis of the business finances to help guide the strategy and meet your goals.
A bookkeeper plays a vital role in the functioning and growth of your business. A bookkeeper also allows you to sleep easy at night, knowing that your finances are accurate, employees are paid, you can meet all legal requirements, and your business can thrive. As a business owner, you are able to focus on what you do best while leaving your finances in the hands of a specialist-trained bookkeeper.
