Within quotes “YES”
But Sad to say, this process is often neglected which has a direct adverse effect on the business. The process of BK is to record your company’s financial transactions which is consolidated and recorded with care – that includes your payroll, budgets, taxes and expenses.
The importance of bookkeeping cannot be emphasized enough, but here are top reasons why this is vital to the health and life of your business.
- Better financial analysis and management
Cash flow management is one of the most important things to focus. Regardless if you are busy or not, 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 can systematize it up from up-to-date follow-ups, invoicing and on-time payment for suppliers.
- Fulfilment of tax obligations
Doing taxes can be really frustrating and hard to understand. During tax season usually entrepreneurs decide to get professional help and hire a bookkeeper. Of course, your needs depend on the type of business you are running, the type of organisation structure you plan to run, and your estimations and budget. However experts recommend organizations to find a bookkeeper who can cater to your small business’ specific needs when it comes to taxes and other financial needs.
- Reducing the costs and making growth easier
At first, it might seem that hiring a bookkeeper may not be good for your budget however, a professional bookkeeper can actually help you save more in the long run. Yes, maybe you can do it all by yourself. Yet, if you have not been trained and educated in bookkeeping, there is a great possibility of making a mistake which could ruin your attempt in making a successful business. So, if you want to save on costs in the long run, think about outsourcing your bookkeeping services.
- Track of timely payments
Most of the times you will probably be too busy managing your business. Late payments can mess up your cash flow and the credibility of your organisation which can be detrimental to your business. By hiring a professional, you can arrange to have your bookkeeper send you reminders and keep an eye on your cash flow. One missed payment can get you in trouble. Have safeguards in place by hiring a bookkeeper who knows what you need and when you need it.
- Plan your future endeavours better
By accurate and comprehensive bookkeeping, you will be able to plan future endeavours for your business. You can evaluate the current standing of your business and make educated decisions about where to take the company in the future. In this way, you can ensure that your company grows and thrives in all it does, minimising the risk of future investments and maximising the possibilities for success.
Likewise, you can ensure that there is a safety net to fall back on. Bookkeeping allows you to set aside funds for a rainy day, should you have to pay heavier taxes or invest more heavily in advertising, for instance.