4 great reasons why bookkeeping is essential to small businesses

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If you are the owner of a small business, you may have asked yourself whether bookkeeping is essential to the ongoing success of your company. Our answer? Well…yes obviously! (As an incredibly wonderful bookkeeping business, would you expect us to say otherwise?!) But seriously, bookkeeping really is massively important for any SME, especially if you want to properly keep your finances in check whilst ensuring the lovely guys at HMRC are always happy (well as happy as they can be…) I know what you are thinking, as a successful bookkeeping business we may be a little biased on this subject. But we are going to back this up with 4 great reasons why bookkeeping is essential to small businesses!

So without further ado, let’s jump straight in!

Accurate bookkeeping helps you budget accurately!

So the first reason bookkeeping is so essential to smaller businesses is it makes it a lot easier to budget properly! If your business’s income and expenses are properly organised, it is a much simpler proposition to review your financial resources and costs. You can then budget accordingly and within the financial constraints of your business. In fact, a budget actually creates a financial roadmap for your business, and once in place, you can plan for those future expenses you will need to make to help your company grow. Without accurate bookkeeping, it makes this process a hell of a lot harder as it almost makes planning budgets pure guesswork. And whilst guesswork may work out for politicians, futures traders and tarot readers, it doesn’t really have a place in a successful business.

Bookkeeping prepares you for your tax!

Businesses are required by law to file their taxes at the end of their tax year. How annoying! But fortunately, with professional bookkeeping in place, you will have the financial information you need at the end of your tax year to keep the lovely taxman from breathing down your neck! And if (when) HMRC asks (demands) a financial statement from your company for tax reasons, having regular and accurate bookkeeping will mean you will be able to predict the outcome with greater precision through the detailed balance sheets you have accumulated over time.

Professional bookkeeping maintains organised records!

We have all been there, trying to find a crucial piece of information but without success. As the pressure (and stress) rises, errors are bound to be made and even deadlines missed. Regardless of whether you are a small business, a large business, a bookkeeping business or an International Flying Circus business, you can’t afford to make these kinds of errors. Regular and accurate bookkeeping will definitely help with this! By staying on top of your bookkeeping and keeping them accurate you will be able to maintain much more organised records, meaning you will be able to find that crucial piece of information you are in desperate need of much quicker!

Bookkeeping makes it easier to set business targets!

Pretty much any business wants to grow, and one thing that can stop that from happening at the pace you want is by having poor or inaccurate financial records. How can you set realistic growth targets and goals without accurate financial data to base them on? Just like point number one, we are straying into the murky world of guesswork, and with guesses comes uncertainty. The easy resolution to this is to stay on top of your bookkeeping and keep accurate and regular financial records, allowing you to be in a much better place to map out your business targets and goals with accuracy, which in turn should help achieve the growth you want. A professional and experienced bookkeeping business like 123 Easy Books is exactly who you need to help with this!

Trust a professional bookkeeping business like 123 Easy Books

Well, there we are! 4 great reasons why bookkeeping is essential for any successful small business. And hopefully, you can see that even though we are a bookkeeping business, we are not biased! You would be surprised at just how much expert bookkeeping can teach you about your company’s finances and how to make better and smarter decisions for your business going forward. So now that we have convinced you, the next step is to get in touch with our friendly and knowledgeable team. Remember, we are big enough to specialise, but small enough to personalise!

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