Why bookkeeping is important for your business?

If you want to keep your business organised and your finances in check on a day to day basis then bookkeeping is an absolute must.

And whether you try to take on the task of managing your company bookkeeping yourself, hire an in-house bookkeeper or outsource the work to a company likes ourselves, there is no getting away from the fact that the more managed your bookkeeping is, the healthier it will be.

Bookkeeping helps your business budget for the future. Taking business income, expenses, salary and other financial aspects of your business and putting them into a properly organised system so that you know exactly what is what. This means that you can budget accordingly and create a real financial roadmap for your companies future. With a budget in place, you can plan for future expenses and be prepared for unexpected outside influences (such as a global pandemic).

Businesses have to file their taxes every year and with bookkeeping running smoothly in the background, your end of year taxes are a far more manageable affair. And if HMRC phones one day demanding your financial statements, regular bookkeeping means you have access to everything they need at the drop of a hat. And that is if HMRC come calling. If you need to simply find archived information on your businesses finances, it can be found quickly and easily with effective bookkeeping services.

The larger a business, the more chefs in the kitchen who want to know what is going on. Bookkeeping is by definition the organisation of financial information so keeping the companies financial records organised makes it easier to compile up to date reports and then distribute them to those that need to be kept in the loop.

Beyond the organisation of the finances of a business, bookkeeping can directly help to manage cash flow more effectively while tracking your profit and growth. Without bookkeeping services, you can’t effectively track your businesses performance no matter how good or bad it may be.

Bookkeeping is key to keeping accurate financial records on your business and can be the difference between the growth of the business or having to hang up a ‘closed’ sign on the front door.

Here are 5 very good reasons why bookkeeping is so important.

1. Tax preparation
2. Business analysis
3. Financial management
4. Cash flow management
5. HMRC Compliance

If you are serious about your business then a bookkeeper is a vital addition to the day to day running of your company. Running a business is not easy. But at Momentum Bookkeeping, our goal is to make it easier for you.

Whether it’s getting paid by your customers on time, completing your VAT returns, processing payroll or submitting your annual accounts and tax returns, the demands on businesses can seem endless. And it’s almost certainly not why you got into business in the first place. It is, however, exactly why we got into business. We do the things you avoid because where your business is concerned, you do the real work, we do the paperwork.

Working with small and medium sized businesses across every industry sector, our experience working with so many companies in so many sectors has taught us that every business is different. Which is why we will always take the time to get to know your business and to shape our service accordingly.