Bookkeeping is an essential part of your business. It is a key to your decision making in a sense success or failure. Let’s see how it is a real time helpful tool for your growth and expansion.
Here are few of 10 reasons out of many of a question that why you need bookkeeping even if you are small;
- Managing and organizing: Organization of financial records is one very most important reason of bookkeeping. You must be capable of using your accounting and financial information at any time, this will really help you on deciding what to do and what to not. It also gives you a picture of your pricing and costing and helps you to identify your on time profits/ losses. It also not only helps you but outsiders to decide about your company/ business e.g. banks, creditors and investors.
- Right decision making at the right time: This is important that you make a right choice for your business at the right time and it is only and only possible at the provision of right information. A right bookkeeper can give you this choice.
- Planning and budgeting: Bookkeeping helps you to present past financial performance of your business and aids to plan. You can plan in numbers as well; this planning will ultimately leads you towards planning of your annual budgets.
- Financial Management: Bookkeeping assists you to keep control of your business finances. Different reports will inform you about your sales, revenues, expenses and creditors etc.
- Better Cash Flow: Bookkeeping is essential for keeping track of your cash flows. It gives you all information in readable way on invoices –customer/vendor name, amount, date issued and due date. The scheduled recording of revenues/sales helps you to determine when your customers and vendors invoices are being paid.
- Track Profit and Growth: Profit is the main motive for any business. Bookkeeping will permit you to track your profits on monthly, quarterly and annual basis or as of your own time and ease. It also gives you a picture of your business cycle.
- More focus on strategic planning: Being a business owner, you want your business to grow so you need to make some strategic plans on how to grow your business. As you have your accounting on track now you can fix this issue and look closely to your vision of achieving your long term and short-term goals. Also, with your proper accounting information you can track your result orientation and also can alter your plans accordingly.
- A good sleep at night: Being a business proprietor, how much stress you can afford, you can sleep well at night of thinking that your business is in secured hands.
- Business Analysis: once your financial statements have been prepared, you can easily look into your cash inflows and outflows i.e. your profit and loss. Bookkeeping is a tool to assess your business performance and recognize your strengths and weaknesses. It is key instrument to create SWOT of your business:
- Convenient way to meet with IAS (International Auditing Standards): It also gives you more space to meet with your auditing requirements. If your books are in control, you should not worry about any kind of auditing requirement. The process will be on pace with more easiness and speed.
The importance of bookkeeping cannot be disregarded and overlooked. Contact us immediately at Growbox Business Consulting to help you get your books organized for this coming year and further!
