For any small business that aims to grow and be successful, systematically and comprehensively recording financial transactions must be paramount. Raising and issuing out invoices, filling requisitions and payment vouchers, recording bills and filing receipts, filing tax returns and a well-run financial operation is crucial to success and can help preempt problems that may arise in the future. Typical of tax audit, all schedules, pay-in slips and official receipts issued by the tax office must be properly kept and every document that proves the numbers filled in the tax returns must be properly kept, defending any objections that may arise in the future. Particularly for small businesses with financial teams, ensuring all financial resources are at their best can save time and money.
Having a dedicated bookkeeping strategy is essential to long-term business success. It helps to make financial management more organized, veracious, and fiscally prudent. There are several advantages to proper bookkeeping:
Improved Financial Management
Advancing toward a strong financial strategy and advanced financial analysis is having the information to understand your business in a bigger picture. That is where good bookkeeping comes into play. Proper bookkeeping helps keep all departments better informed and enhances strategic thinking.
Improved Business Decision Making
Bookkeeping records offer benefits that help you make smart business decisions. You can identify money-making opportunities, avoid cash-flow problems, find ways to increase income or decrease expenditure and hence, increase business profits as against losses. Good bookkeeping records also are beneficial when you’re applying for a loan as it makes it easier for lenders to make decisions about your business.
Audit Readiness
Organized bookkeeping allows the finance team and auditors to easily refer to relevant financial records and make the process as smooth as possible since all the relevant supporting documents will be readily available. Maintaining an organized, easy–to-use filing system keeps these documents within easy reach at all times and provides evidence or proof for content of financial statements
Tax Audit Preparation
During this period, the entire financial team will be grateful for a year’s worth of organized bookkeeping. Having easy access to all financial documentation will save time and most likely money as the finance team can more easily discover potential tax deductions.
However, without proper bookkeeping, it can be very hard to know if there is a problem with your business financial records or a threat to the financial health of your business. This can leave the organization gawky in the event of an audit or unexpected business change, and can also lead to uninformed business decisions. In addition, without thorough bookkeeping it can be easy for financial problems to go unnoticed, often until it’s too late to respond properly.
The first step to deploying a bookkeeping strategy for your small business is ensuring you have the right tools and resources in place. Proper resources include everything from financial software for managing data and information as well as skilled financial professionals. Let’s make this SIMPLE, contact Built Accounting and re-position your business unto the road to growth and success. You can reach us via email (hello@builtgh,com) or call 0303974832 for all your business accounting needs.
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