The simple reason why is Bookkeeping Essential to your Business is because it helps you to track your finances.
You are, as a business required by law to keep a record of accurate accounts for the last six years. Bookkeeping makes this significantly easier.
Up to date and detailed bookkeeping provides you with the latest information on your business finances so that you can make important financial decisions to help your business grow. Professional bookkeepers can provide you with these valuable services while helping to make your bookkeeping more efficient – Making sure your accounting documents are error free, well sorted and up to date.
By having the latest, most correct bookkeeping figures easily at hand, you can plan for your business growth and really build momentum in your company. You can produce cash flow forecast and make clearly defined plans for your business growth. Reports like this can be vital when your business is looking to expand.
Whether you are looking to set a future budget, apply for a financial loan or grant scheme funding, having bookkeeping to generate the latest reports is crucial. Businesses need funding to grow and whether you are presenting to the bank for a new business loan or a financial investor, they will want to see proof that what they are investing in is a reliable, well oiled machine.
Bookkeeping is also invaluable for budgeting in your business. How much did your business spend last month on office supplies? This seemingly small issue could actually be a significant outgoing cost for your business. Bookkeeping can cut through what you may assume you spend and generate real data that you can act on. Sometimes seeing the outgoing costs of X are enough for your to action a switch and end up saving money in the long run.