Accurate and timely bookkeeping is a fundamental necessity for each and every business that has a vision to grow or stand out in the competitive market. Businesses of all sizes and in all industries have failed (and will continue to do so in the future) as a consequence of their failure to keep accurate financial records. Quite often these businesses would have been successful but without accurate records, management was unable to make the correct decisions in order to overcome the problems that caused the business to fail. Here is a great article from My Herald Magazine on this topic:
Bookkeeping is one aspect that most business owners would not love to involve themselves in. On the contrary financial management is very crucial to sustaining and expanding a business. Without it, there is risk of hitting cash flow crisis, wasting money, scrambling for receipts and facing other financial information issues that could lead to the closure of a business.
Accurate bookkeeping is a necessity for each and every business that has a vision to grow or stand out in the competitive market. Many businesses which would otherwise have been successful have been brought down by their failure to maintain proper financial records. Whether you like it or not bookkeeping is very essential in a business.
Proper track of cash flow is critically important for any business and it’s only possible if you have accurate financial records. Many businesses that were seemingly profitable and growing have failed after being hit by unexpected cash flow.
Expenses should always be paid for directly from the business bank account and should ideally be submitted on a monthly or quarterly basis. This ensures that the person doing the bookkeeping has an understanding of outgoings and can monitor them for tax and accounting purposes. Proper book keeping will help a business identify where there is over spending and eventually lead to a reduction.
Accurate book keeping allows you to see whether or not your business is actually making a profit. It is surprising how often business owners fail to keep track of this but it is obviously extremely important. As much as the business might appear to be doing well in terms of cash flow if not well monitored it could be over spending the money.
Bookkeeping always helps a business owner to have a greater understanding of how much progress the business has made. You can look back and see patterns and draw comparisons with previous business years. This can provide a greater understanding of the areas within the business which make a profit and where costs might be trimmed. This kind of financial analysis can help you to avoid problems in the future.
Bookkeeping may seem a burden when you are trying to grow your business but it is essential if you are to not only survive but also prosper in today’s tough economic climate. Many business that were well doing have ended closing down due to poor book keeping. In a business the more you earn and the lesser you spend the stronger you become.
A proper bookkeeping system is essential to any business whether big or small in order to manage its daily functions and keeps the business running successfully. For any successful business, the main obligation is to maximize profits, minimize any loss and at the same time maintain its position as a responsible entity within the society. A business that does not have a proper bookkeeping system is like a blind folded driver who can easily cause an accident.
Whether people like it or not, bookkeeping is fundamental to the success or failure of every business. Maddock’s Accounting & Advisory have an experienced and qualified team of bookkeepers who provide bookkeeping services to clients in a wide variety of industries. We match clients to our bookkeepers who have practical industry experience and then leverage our processes to take all the hassle out of your bookkeeping!
Contact the Maddock’s Accounting & Advisory team here to find out how we can help.