Why Financial Bookkeeping Is Important for your Small Businesses
All small businesses need a good financial bookkeeping service to ensure that your finances are always in order. A bookkeeping service can cover everything on the financial side of your business from creating invoices, chasing up payments, preparing for tax deadlines and processing payroll.
If you want to reclaim more of your time to reinvest in growing your business hiring an expert bookkeeping service is essential for all small businesses with ambition. Read on to find out why you should consider a bookkeeping service for your small business.
Daily Account Management
A good bookkeeper will keep of all your business transactions, this means you will have a better idea of your cash flow and can help you make informed decisions. It also saves you time on data entry and the tedious process of keeping track of each sale which can be better spent elsewhere.
Keep Your Records up to Date
One of the most challenging aspects of bookkeeping is making sure all your records are up to date. A bookkeeper will take care of this for you and also will let you know of any mismatches between your books and accounts meaning you can correct any issues fast.
Stay on the right side of the law
Not having a professional bookkeeping service not only costs you time it can also cost you if you get something wrong. It’s important that you stay on top of the latest tax laws to avoid any potential fines from HMRC but with a bookkeeper you can rest assured that this will be taken care of.
Similar to potential changes in the law, there are also penalties for filing your taxes late. Instead of rushing to do this at the last minute yourself, if you have a bookkeeping service they will make sure that everything is submitted correctly and on time, so you don’t have to worry about costly fines.
Manage incoming and outgoing payments
Bookkeepers can also save you time by making payments on behalf of your small business, such as paying suppliers, dealing with invoices, petty cash and expenses. They can also invoice clients on your behalf and chase payments, so you are paid on time.
Create Financial Statements
Bookkeepers can also take on the responsibility for creating profit and loss statements, balance sheets and cash flow statements when required. These can be highly useful when you need to see your businesses bottom line and operating expenses, the balance of assets and liabilities as well your cash flow.
Payroll is another function which bookkeepers can take over for you. For a small business this might include helping businesses with the processing of pay checks and tax payments to employees ensuring that everyone gets paid correctly and on time.
Monitor Cash Flow
One of the most important tasks a bookkeeping service can do for a small business is to make sure their cash flow is in good shape. This can be done by monitoring the balance of revenues to expenses, along with offering more advice if the business needs more available cash to operate.