6 Reasons Why Bookkeeping Is Essential to Every Business

Bookkeeper's notes and calculatorBookkeeping refers to the initial step in the process of accounting and is probably the most vital. A bookkeeper will put together all financial data, including transactions and wages. They’ll then turn this data to readable and relatable reports that can be used for future reference.

There are various benefits of hiring a competent bookkeeper, and in the ever-changing financial world, every business would love to have a trusted one, such as Bould Bookkeeping, as part of their team.

1. Comprehensive Recording

A thorough, devoted bookkeeper will be sure to maintain updated records. With detailed recording, you will have an easy time inspecting your business accounts, and you will also have an easy time whenever you need financial statements – or as soon as your company is audited – because the process will be faster and cheaper.

2. Always Compliant with Laws and Regulations

A great bookkeeper will always adhere to the latest laws and regulations and will be sure to keep all the accounts and books updated in line with any recent changes in the laws and regulations. Bookkeepers are responsible for all their work, and you can always count on them to look out for any errors. This saves them time and effort in the long run and, in turn, saves money for your company.

3. Improved Planning

By having a detailed recording and a clear summary of the company’s accounts, planning and predicting the future becomes easier. If you are confident with your numbers, you go round issues quickly and easily, seizing any openings that present themselves, without worrying about miscalculations in the records. Luckily, with the profit and loss overview in the balance sheet, what you need to do will be clear, and you would know how much time you have for that.

4. Prompt Reporting

While you have to wait for the accountant or auditor to complete their reports before you can conclude the financial statements, you can always access an updated balance sheet to look into the current state of the company’s accounts. This way, you can present the data to the relevant parties. Overall, this boosts your confidence as a manager and also ensures that the company is in an overall good state.

5. Accurate Tax Prediction

Even though the Her Majesty’s Revenue and Customs will expect your company to produce an official financial statement for taxation purposes, you can easily tell the outcome if you have kept a record of detailed and accurate balance sheets over time. With such records and an assessment of the company’s business trends, you can confidently predict the taxes due at the end of the fiscal year.

6. Quicker Financial Analysis

Bookkeeping is often less expensive than accounting. As such, it helps a company greatly to have a bookkeeper who maintains accurate and detailed records. This will shorten the time needed by an accountant to analyse the company’s accounts and create the relevant financial statements. Besides reducing the estimated cost of accounting, this also benefits the company by allowing it more time to review and act upon the information presented by the analysis. Essentially, this helps the company change or adjust any of the strategies it had planned to implement.

Ultimately, every company or business person would benefit from having a competent and thorough bookkeeper.