Chloe Greenbank, our staff accountant, says…

The Importance of Good Bookkeeping

 

It can sometimes be a tedious task, especially when you have invoices and receipts coming out of your ears but bookkeeping is an important task for all business owners and it should be completed on a regular basis.

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Why is bookkeeping so important…

 

  • Helps with business decision making i.e. is the income covering the outgoings, do prices need to be increased, what costs can be cut…

 

  • Helps with financing – if your books are up to date and in an organised state this can help when applying for finance and can speed the process along

 

  • If HMRC were to ever investigate your business you need to show you have good records, these also need to be kept for 6 years

 

  • Keeps accountant costs down – if your information is in order, your accountant will spend less time on your accounts and will keep your costs down

 

  • Can help with budgeting and forecasting

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  • Can help with cash flow – it is important to know how much cash you have and what cash will be going out and you don’t necessarily know this unless keep up to date with your bookkeeping

 

For any bookkeeping tips or queries please do not hesitate to get in touch with us!