Keeping track of the finances of their business is one of the most important tasks for any business owner. Unfortunately, in many cases, it is also the business task most often ignored.
This is where bookkeeping comes in. A bookkeeper’s job is to “keep the books.” Understanding the numbers in your business is vital for business success, enabling you to meet your business goals.
So What is Bookkeeping?
At its simplest definition, bookkeeping is the recording, collation and recording of financial information. This information can be recorded in a simple excel spreadsheet, but is more commonly recorded using cost-effective software. (Side note – if you choose a bookkeeper that is using a spreadsheet you need to get a new bookkeeper.)
What is the Value of Bookkeeping?
Accurate and timely bookkeeping is invaluable for a business. Having up to date information about your business allows you to easily and accurately understand how your business is performing. It allows you to forecast for future planning. In many circumstances it can also allow you to access finance to grow your business. You can identify trends and also potential problems before they may occur.
Bookkeeping also means keeping track of things like customer invoicing, paying all your bills and making sure your staff gets paid. When it comes to taxes, you also want accurate bookkeeping. If your numbers are accurate you are not going to overpay on things such as BAS, STP, Super, Payroll Tax, FBT etc.
Why You Should Engage A Bookkeeper?
If you are like a large portion of business owners out there, bookkeeping is an afterthought. This is negatively impacting your business. Bookkeeping is incredibly cost effective and can have a massive positive impact on your business.
If nothing else, you should engage a bookkeeper to do those tasks that you don’t want to do so you can concentrate on what’s more important for you to be doing.
Further, engaging a bookkeeper not only means that you are better placed to meet all your tax obligations, some of which are very complex. More importantly it means you will be able to claim all tax deductions that you are entitled to.
We hope that this article has helped you to fully understand the importance of accurate bookkeeping for your business, and that you have also seen the benefits of engaging a bookkeeping professional. Further, we hope you realise the importance of getting a bookkeeper that is also a registered BAS Agent. This best sets you up for future success.
At CBKBS, we are experts when it comes to business bookkeeping. If you would like to have a no obligation chat about how we can support your business, please get in touch today. We’d love to get to know your business better and discuss how we can make your life easier.