Reasons to love bookkeeping

Bookkeeping plays a key rôle in every successful business. Without accurate books you have no idea how well or otherwise you are doing financially. You may feel good about your business but you don’t know that financial ruin isn’t just around the corner.
And in these credit crunched times when banks are reluctant to lend, cash flow could be your downfall. Furthermore banks don’t lend into an information vacuum: they need to see your books first.

A financial compass for your business

You can’t manage or improve what you don’t measure
Bookkeeping gives you essential management information to help you run your business more effectively.
Accurately assess your current financial position
Sales and purchase ledgers allow you to keep tabs on what you are owed and what you owe.
Evaluate profitability
Up to date books allow you to generate reports to, say, measure the success of new product lines or marketing drives.
Lenders like realists!
Bookkeeping enables you to compile reliable figures to back up an application for a loan or overdraft.

Clarifying your tax position

  • Accurate books massively simplify filling in your tax return and reduce accountants’ fees should you need one.
  • Well kept books improve the credibility of expenses and capital allowances should you be investigated.
  • Accurate year end accounts enable you to pay the exact amount of tax you owe, not too much or too little, so you don’t get charged interest or have to pay a fine.
  • Bookkeeping helps you to create accurate cash flow forecasts and tax liability projections etc.
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