Why is bookkeeping so important? People advise you to keep on top of it, but it always ends up at the bottom of the priority list? We’re here to give you the realities and bust some myths!  

Bookkeeping can be confusing and time-consuming, but it doesn’t have to be! You might be getting to grips with it or putting it off in the hope it disappears! In this blog, we’ll delve into why you need to keep on top of your bookkeeping, as well as the difference between bookkeeping and accounting.

Why is bookkeeping essential to your business?

Bookkeeping is essential for keeping track of your finances. A means of measuring, recording and storing all of the financial transactions that occur in a business. On the ground, this equates to handling the day-to-day financial tasks. This could include: recording receipts and invoices, paying suppliers & employees, data entry and posting debits and credits. Exactly what is involved will depend on the business type and procedures. Keeping your process consistent is the key to a successful bookkeeping system. For some, this may require outsourcing the work or employing someone specifically for this role in-house. However, many small-business owners choose to complete this work themselves, allowing them to keep their finger on the pulse of their finances. Away from the fact that by law you are required to keep accurate accounts and records, accomplishing this will also save you hassle in the future.  Having well-implemented bookkeeping provides you a snapshot of your business’ health in the form of financial statements.

What’s the difference between Bookkeeping & Accounting?

Essentially, bookkeeping is concerned with maintaining accurate financial records for your business consistently. Accounting uses those records to explore your business’ overall financial position, and analyses reports in order to help you make informed decisions.

Outsourcing your Books

Using a professional bookkeeper can provide many values that will make your finances more efficient.  The most obvious value is to eliminate errors caused by missed calculations or data entry. Using someone who does these tasks every day will help to ensure that all your accounting documents are error-free and could improve your processes in-house as well.

In conclusion, any form of business planning relies upon a strong accounting service, which is only able to function well with precise and accurate bookkeeping. This may be completed by yourself (a business owner) or a member of your team or outsourced to an external bookkeeper. Whether or not you have the resource within your team to complete quality bookkeeping, for financial analysis and expertise, you’ll need a qualified and experienced accountant.

If you would like any guide or support on your bookkeeping or accountancy services, we are here to help, just get in contact with one of our team.