Besides being a requirement by law, bookkeeping for businesses gives you peace of mind when it comes to decision-making. Here are the five benefits of bookkeeping:
- Helps you comply with government laws
- Allows certainty while budgeting
- Keeps finance organized and easier to analyse
- Effortless reporting
- Prepared for audits and tax season
Helps you comply with government laws.
Whether you’re the owner of a small e-commerce business, jewellery store or home start-up, SARS expects all bookkeeping for businesses to be in order. Having your financial statements ready when the occasion arises keeps you stress-free.
The government also expects all businesses to toe the line when new regulations are enforced. Such is the case with taxation transitioning to digital. Accounting services do bookkeeping for businesses and always keep up to date with the latest cloud software, regardless of new digital implementations.
This allows you to adapt as a small business, maintaining your competitiveness amongst companies. You don’t have to worry about compliance when your accounting services take on the responsibility.
Allows certainty while budgeting.
Knowing when and where to spend on core business applications means earlier and more consistent growth. You get better predictions on your tax, which enables you to set aside accurate funds.
The decisions align with your bookkeeping and accounting, enabling more precision with financial results. Expenses don’t come as a surprise and you always have the knowledge that you’re profiting come hell or high water. Such is the advantage of accurate bookkeeping for businesses.
You eliminate losses, or better yet, are able to plan ahead and avoid them at all costs. This point is elaborated on further when we mention how graphing and visualizing your financial data contributes to achieving your goals.
Keeps finances organized and easier to analyse.
When your finances are organized, you can track and cut back on unnecessary expenses. Knowing accounts receivable and trends in late payments help to improve cash flow.
It also allows for insightful strategies to be implemented which enable you to plan for dips in cash liquidity. Your business roadmap allows you to achieve your yearly financial goals when you take out all the guesswork.
Bookkeeping for businesses keeps you protected against and simultaneously helps you avoid instances of fraud. When your firm’s accounts are in order and you have time to focus on the core aspects of your business, you eliminate stress and learn faster.
When your financial data is organized, if you get it clearly visualized, you are able to make more intuitive decisions based on a thorough understanding of key factors that are accurate due to your financial records. Along with the visualization factor, you’re able to pick up on questions that may have not crossed your mind in the first place. If your data had been off, your questions would later lead to inaccurate results which would cost the company and derail you from your goals.
The best accounting firms practice such organization and make use of opportunities, whereas inexperienced companies fail due to gaps in their bookkeeping.
Your books will always be available when an investor needs a report. Delivering it timely will add to the confidence they have in your business.
You turn roadblocks into opportunities when demands for cloud accounting give you the prospect to reach overseas investors. This simultaneously prompts investors to do financial analysis with regard to Porter’s five forces, expecting accurate bookkeeping for businesses regardless of size.
And while you may have clear goals, their findings may contribute to your business and open up new prospects to expand.
Besides external investors, you can confidently approach banks for loans. If you’ve used the financial data to make use of opportunities, bankers will be more interested in your proposals. All this is on top of the feedback that spot-on bookkeeping for business enables.
Prepared for audits and tax season.
Dread it, run from it, tax season arrives all the same. If your balance sheet is out of date, then you add to the stress when it comes to filing your taxes at the end of the tax year.
Tax accountants have an easier job when your books are up to date. You’re less likely to get penalised if they require little time to review your accounts.
External auditors may even be impressed, which contributes to a good word about your small business. Imagine the unprompted marketing opportunities you gain when an accountant mentions your business around a dinner table.
Outsourcing your accounting to firms that do bookkeeping for businesses, keeps you from discrepancies and thus keeps your business in line with regulations. Your key benefits are accuracy within budgeting, easier analyses of financial goals and increased likelihood of securing investors.
Whilst every other company may stress about tax season, you will happily continue with your day-to-day tasks.