It is common for a small business owner to struggle with the ins and outs of their bookkeeping and accounting chores.
The biggest problem that exists for them is the lack of good bookkeeping. The bitter fact is, they sometimes take the importance of bookkeeping too lightly. As a result, it can get quite messy by the time they file their year end tax returns.
If you’re looking to learn how routine bookkeeping can get your business’ finances in shape, here are some key takeaways:
1) Helps keep track of cash inflows and outflows:
- If you have found your business doing really well and yet struggle with cash flow management when it is time to make a payment to vendor or advance a payment for placing an order, it is time to stop wondering the reasons for the same and start a routine bookkeeping for your business.
- It’ll help track the money coming into your business and monitor it against any outflows such as bills, salaries or property costs. It can give you a complete picture of cost versus revenue to ensure you have enough funds to pay your bills whilst also making a profit, not to mention it’ll help you keep doing what you love the most – carrying your business as long as you want!
2) Reviewing and controlling petty expenses
- As convenient as it is to pay for those team treats or meals and celebrate every little milestone in your business, it is as important to account for any such small expenses incurred from and for the business.
- It is only a matter of time when penny expenses added up have a surprisingly big amount. You may want to ensure that you are taking the maximum benefit of any tax credits available on all expenses, whether small or big.
- Nowadays, with auto debit and auto payment options, it is more than ever necessary to review those expenses and timely eliminate them when services are unused.
3) Identifying fraud at the early stage
- As your business expands, it usually means that more people in your organization have access to banking information. As convenient as it sounds to sign up for that pre-authorized debit or credit card charge, it is important to regularly review them to mitigate the risk of being victim to any fraudulent activity.
- Here’s a link(*link to case study blog) to a case study where we helped our client identify fraudulent/wrongful charges and save their bottom line. Remember, every penny adds up!
4) Improve credibility and goodwill of the business
- Here’s a link(*link to case study blog) to a case study where we helped our client identify fraudulent/wrongful charges and save their bottom line. Remember, every penny adds up!
- Now, tell us if this doesn’t improve the credibility of your business within industry which indirectly increases the business goodwill.
5) Makes year end process seamless
- Last but not least, year round bookkeeping makes filing year end taxes seamless and effective where you don’t have to take out your most important resource out of your business – time.