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Why bookkeeping should be one of the first things a business owner outsources.
Bookkeeping is fundamental to the success of any enterprise, big or small. It provides a systematic record of your company’s financial transactions, from sales and investments to expenses and payroll. When done correctly, it can help your business thrive. This article will share why we believe sound outsourced bookkeeping practices can increase productivity, satisfy compliance, and even help you plan.
- Streamline your operation
Accurate bookkeeping is at the heart of any successful business model, and by maintaining comprehensive financial records, you can save your company time, money and unnecessary disruption.
Here are a few key areas where good outsourced bookkeeping can help to streamline your business:
- Cash flow
Every successful business, small or large, needs to maintain a healthy cash flow to pay staff and suppliers and any overheads, such as rent and other essential operating costs.
Failure to meet these payment obligations could seriously affect your business’s stability, leading to dwindling profits and, in some cases, closure. By outsourcing your bookkeeping, you can continuously analyse your business’s finances, keeping a healthy cash flow and ensuring you have a little put away for a rainy day.
Without appropriate bookkeeping, it can be complicated to file an accurate tax return. This complication could result in your business paying too much tax, which could affect your company’s overall cash flow, or paying too little, which could lead to costly penalties. Without the correct overview and advice, you could also miss out on valuable tax breaks.
By maintaining good bookkeeping practices throughout the financial year, you’ll be able to fulfil your obligations to HMRC and ensure you never pay a penny more in tax than you need to.
Without accurate bookkeeping, things, like paying bills, chasing debtors, preparing year-end accounts, and producing detailed reports for crucial stakeholders, can prove challenging and time-consuming. By keeping meticulous and regular financial records, you will save yourself time and money, maximise your profits and increase productivity.
- Planning for the future
By keeping precise financial records, you’ll have the tools you need to devise successful strategies for your business, allowing you to consolidate your assets and make informed decisions about your business’s future.
Here are just a few examples of how good bookkeeping can help to futureproof your business:
By keeping a comprehensive and correct record of your company’s finances, you’ll be able to set realistic budgets to cover things like your marketing and recruitment costs. Sound bookkeeping practices will also enable you to build some flexibility into your accounts, allowing for financial fluctuations throughout the year while ensuring you don’t overspend.
With accurate bookkeeping, you’ll be able to produce accurate financial forecasts, allowing you to set achievable goals. You will be able to set up various scenarios to help you make informed decisions about your business’s future.
You are much more likely to qualify for a loan or a company credit card if you can produce detailed financial information. So, if you’re seeking an injection of cash from your funders, bank or building society, an accurate set of accounts is an absolute must.
- Investment opportunities
If you’re looking for investment, your books must be in good order. Potential investors are likely to request financial data before deciding to take a deal forward. The ability to produce accurate, measurable financial information could make or break any potential deal. The necessity for similar financial information will apply if you are looking to sell your business.
Bring in the professionals!
When you’re running a small business, you don’t always have the time or the know-how to maintain good bookkeeping practices throughout the financial year. It just may not be a sensible use of your time. However, suppose you are not yet at the stage when you can or need to employ a bookkeeper or accounts assistant full-time, things like dealing with invoices, recording expenses, and preparing year-end accounts can prove difficult and time-consuming. At AccountAbility-Plus, we offer the perfect solution.
Our expert outsourced bookkeeping services for small and growing businesses will provide the tools and the knowledge you need to simplify your accounting processes, saving you time and money and giving you the peace of mind that your finances are in safe hands.
Whether you’re just starting or have been running a small business for several years, we can help you streamline your operation, maximise investment opportunities, and improve your bottom line.