Systematic, accurate tracking and day-to-day recording of all the financial transactions and information of the company form the pillar for smooth functioning and growth of any business be it small, medium or large.
A qualifier bookkeeper or accounting resource is the person who diligently records all the transactions of the business and plays a central role in processing payments, conducting daily bank activities, performing bank reconciliation and preparing financial reports; activities that are crucial for the day-to-day running of any business. But not every business have an integral bookkeeping process in place for their accounting and even if they do they do not hire a qualified and dedicated bookkeeper to take full advantage of bookkeeping process which lays the foundation for an efficient accounting process.
If you are a small and medium business owner, bookkeeping is critical for the smooth functioning and growth of your business. Still not convinced how? Then this blog is for you. Here are the reasons why bookkeeping is fundamental to the success of any business:
- Better Organization of finances:
As a business grows, financial transactions grow exponentially making it difficult to track and keep them organized for review, analysis and decision making. On top of that business growth also demands organized financial records from IRS, investor, lenders and customers, failing to which can result in crippled business operations, strained relationships and even penalties (IRS). Having a dedicated bookkeeper with a tried and tested integral bookkeeping solution is the sure-shot way to keep the finances organized and lay a strong base for review, analysis and better financial decision making. This is also one of the major reason why the majority of small and medium business outsource bookkeeping functions to back-office accounting firms like us at Outsourced Bookkeeping.
- Helps your plan your budget:
With the accurate recording of every transaction of the business, proper organization and review of income and expenses incurred by the business, bookkeeping significantly reduces the burden faced by the business in forecasting and budgeting.
If budget crates a clear financial roadmap for a business, bookkeeping makes budget easy and accurate to perfectly guide your financial resources towards your business operations without fail. With bookkeeping, you no longer have to rely on guesswork for your financial forecasting and budgeting and take our decisions with clarity and make your business moves with accuracy.
- Makes tax preparation easy:
Every year as the tax deadline arrives, business scramble through the paper works to get their tax filing done yet the majority of them fall short of the deadline. For every small and medium business, tax preparation can be a daunting task without proper records of transactions. Having a bookkeeper who tracks and records all the financial transactions makes tax filing a breeze. But it doesn’t end right there, an efficient and accurate bookkeeping also creates better opportunities for your tax savings. Having a qualified bookkeeper on your payroll helps you prepare tax returns, claim the appropriate deductions, and avoid additional expenses incurred.
- Better financial analysis and planning:
Now that the finances are organized with accurate records, this lays the foundation for making better analysis to measure business performance and take the right steps towards growth. An accurate record of transactions, preparation of invoices, verification of expenses and other essential bookkeeping functions paves the path towards accurate financial reports which are key for financial analysis and planning. Analysis of financial reports gives a clear picture of the past and present status of the company to help make the right strategic discussions that play a major role in planning for Bette financial optimization for business growth.
- Improved focus on business strategy for management:
Having a dedicated bookkeeper with an integrated bookkeeping process keeps the financials organized, helps plans your budget, tracks profits and loss, mages cash flow, makes your tax preparation easy and lays a strong foundation for financial analysis and planning. In essence, bookkeeping removes the additional burden placed by disorganized books saving you both time and money which can be efficiently spent towards business strategy and tactical planning for business growth.
Bookkeeping is the back-office engine room for any business, better the engine, improved will the business performance and mileage. At Outsourced Bookkeeping, we have been able to help hundreds of businesses level-up their bookkeeping engine room with our remote bookkeeping services for smooth functioning and better business growth. If you are a small and medium business looking for outsourced bookkeeping services, you can contact us here: https://outsourcedbookeeping.com/