Like most business owners, you probably want to focus your time and attention on product development and sales-not bookkeeping. But here's a fact: proper bookkeeping and financial management is crucial to sustaining and growing any business. If you don't Take care of these areas, you risk wasting money, hitting a cash flow crisis, and having to scramble for receipts and other financial information should you suddenly be audited. Below are just some of the many reasons why keeping good records is important.Bookkeeping enables you to manage your money so you can use it to make your business grow. When you have access to reliable information, it's much easier to make good financial decisions.Bookkeeping ensures that you stay organised when dealing with suppliers and customers. Your business needs a systematic way of producing invoices, estimates, and quotations promptly and accurately. Being organised can mean the difference between winning and losing a project. Similarly, you can't just rely on the statements from your suppliers. It makes sense to know how much you owe before they tell you.Bookkeeping makes it much easier to prepare management accounts, so you always know whether you're truly making money (or losing it). Management accounts give you a complete picture of how your business is performing. It lets you easily compare one period with another.Bookkeeping lets you find important documents and information quickly. For example, if someone disputes your invoice, you can quickly find information regarding the order and compare it to the services / goods supplied.Bookkeeping makes it easier to apply for a bank loan or get an overdraft. Banks require meticulous accounting paperwork to approve a loan. If you are planning to borrow funds to grow your business, later on, make sure that your records are in order as early as now.Bookkeeping lets you plan for tax payments. Don't wait until the last minute to set some money aside for such liabilities. With proper bookkeeping, you can also check your tax position accurately. After all, the HMRC makes mistakes sometimes.Bookkeeping makes filling your tax returns easier-and can even save you money. It ensures that your VAT Returns and other items of expenditure are on hand so that you can
make a claim for Tax Relief if possible. With organised records, it's easier to claim anything you are entitled to. You also avoid interest and penalties because everything is filed and in good order, so you can pay the right tax in a timely manner.
Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.