Why Bookkeeping is Important in Business?
“Bookkeeping is the activity or occupation of keeping records of the financial affairs of a business.”
In general terms bookkeeping is ESPECIALLY important in business as it keeps your business records organised, helps business budget, and prepare for all the necessary tax compliance issues.
To keep your business finances in check, we recommend you use an experienced bookkeeper who is a registered BAS agent. To find if your bookkeeper is a registered BAS AGENT Go to https://www.tpb.gov.au/registrations_search.
The following are more specific reasons why bookkeeping is important.
- LIVE Bookkeeping – Is keeping business financial records up to date using cloud-based software and applications. We suggest updating your business records at least once a week. The benefits of using LIVE bookkeeping, is you know how your business is tracking, so you can make any adjustments quickly for improvement. To watch a video on LIVE Bookkeeping CLICK HERE
- Budgeting – Accurate budgeting is a crucial financial tool for business to measure and manage financial records. LIVE bookkeeping is the beginning process to prepare accurate and meaningful budgets. We recommend you do CASH and Accrual budgets.
- Cash Flow Improvement – There are 6 cash drivers in business to improve cash flow:
- Cost of Goods sold
By using LIVE bookkeeping and measuring the 6 cash drivers you can manage and improve business cash flow.
Download the eBook “Creating Cash Flow for YOUR Business” CLICK HERE
- Peace of Mind – We recommend you use an experience BAS Agent bookkeeper that practices LIVE bookkeeping as it will give you peace of mind that your financial records are under control.
- Spend time on building your business – Successful businesses spend their time on growing their business and let skilled bookkeepers handle the financial affairs.
- TAX compliance – Good financial records that are kept up to date will reduce your tax compliance costs.
- Reduce your PAPER RECEIPTS –Excellent bookkeepers will keep you up to date by using cloud-based applications that will reduce those paper receipts; just take a picture and file the paper.
Learn from your bookkeeper, they have a wealth of knowledge.
To find your local expert bookkeeper click here
Disclaimer: Ogpa Pty Ltd ABN 35 162 809 118 trading as Jim’s Bookkeeping & Tax is a registered Tax agent, 25413903, the information provided in this article is of general nature only, before you act on this, we recommend you consult a registered BAS agent.