If you’re thinking about starting your own business or growing your small company, you have a lot of things to keep in mind. One of the many things to think about is bookkeeping.
Bookkeeping is defined as ‘the job, or activity of keeping an accurate record of the money that is spent and received by a business or other organisation.’ But whether you’ve looked it up in the dictionary or not, the term can be confusing for many.
In this article, we’ll take a look at the concept of bookkeeping and explore why accuracy in bookkeeping is so important for your business.
Why Does Bookkeeping Matter?
Accurate bookkeeping is essential for any small business and is generally used to complete BAS returns and annual tax lodgements. Accurate bookkeeping is also a useful tool in making daily and weekly business decisions. Keeping records with accuracy and clarity allows you, as the business owner, to make better-informed decisions about your company finances.
What Do Bookkeepers Actually Do?
Bookkeeping includes tasks like recording daily financial transactions, creating invoices, payroll, maintaining a general ledger for your business, posting debits and credits plus more. All these actions help you stay in the know about your business’ financial standing and prevent you from accidentally running out of cash or inaccurately filling in your tax returns.
Should I Hire a Bookkeeper?
With accountants to help you do more complex tasks such as creating a financial analysis and business budget action plan, bookkeeping can seem simple and unimportant.
However, as you can tell from this article, the smart business owner knows the importance of good bookkeeping for the financial wellbeing of their business.
Your Next Steps
ABJ Business Solutions is here to help small business owners like you to make sense of your business finances. Get in touch with us today to find out how we can help you with bookkeeping and other financial services!