The financial aspect of a business is hugely important for its success. You can have a nice business idea but without the proper financial know-how of doing business, it won’t amount to anything. Similarly, if you don’t stay on top of your finances, you would run your business into the ground pretty soon. This is why it is essential that you take the financial side of your business seriously. You need to make sure that all your books are balanced and a record of all the business transactions is meticulously maintained. All of this comes under the umbrella of bookkeeping. Without it, you won’t be able to run your business for long.
What Does Bookkeeping Entail?
Bookkeeping is mainly concerned with the recording of data. It calls for keeping a record of all the business transactions no matter how small or big they are. You have to make sure that the data is documented in a proper manner so that it can be presented whenever needed. Moreover, it also includes storing tabs on the payments that you have to receive from other clients as well as those that you have to make to others. Bookkeeping also encompasses the creation of simplistic financial reports too. These reports include information regarding the current balance in your different accounts and details of all the expenses and income that the business is making. MYOB, XERO and QuickBooks Online are common accounting softwares utilised by small and medium businesses.
Why is Bookkeeping Important?
There are severe financial consequences for not paying attention to bookkeeping. For instance, when it comes time for you to file your tax returns, you would need to have a record of all the transactions available to you. If you haven’t done it throughout the year, you would end up having to do it in a hurry,making lots of mistakes along the way. This could result in penalties and you might end up losing out on tax refunds that you are eligible for. Moreover, you need bookkeeping to know about the current financial standing of your business and whether or not it’s headed in the right direction.
Is Hiring a Bookkeeper Necessary?
Most business owners don’t have the time or the expertise to do their books themselves. Therefore, it is best that you hire an expert that can do this job for you. There are bookkeeping services available that can help you in balancing your books for a small fee. You can also hire a full-time bookkeeper to handle your finances too.
Shoebox Bookkeeping provides quality bookkeeping services to businesses all over Australia. Feel free to contact us if you need help in balancing your books.
Shoebox Bookkeeping 