The prospect of bookkeeping does not fill many business owners with joy in fact it is often regarded as a painful and tedious task.
The harsh truth is that there is a very high percentage of small businesses that fail within the first five years and the largest cause of failure is financial mismanagement; not because the product was not good enough or the sales efforts did not perform. In any business cash flow is one of the most important measurements of survival and effective bookkeeping is the critical to managing this
Bookkeeping essentially keeps a record of outstanding receipts, payables and business assets as well as tracking the day to day money flow in and out of the business. Therefore it actually provides an accurate financial picture of what’s going on in your business.
It’s important to recognise that the bookkeeping system you use is efficient and comprehensive, should the information that’s captured not contain all the relevant information then incorrect financial conclusions will be drawn as well as an incorrect view of the business’s financial status being shown.
The benefits can be as simple as producing a report which highlights which clients owe money or it can be a little more complex by providing information necessary for the evaluation of a specific purchase, recruitment or business expansion. Having this information enables the business owner to use it to make good business decisions with real time visibility.
The best way to ensure you receive the most value from your bookkeeping is to raise your expectations of your bookkeeper and start to use your bookkeeping system as a tool to monitor your profits. If operated properly bookkeeping no longer becomes a hassle, it becomes an opportunity to find ways to improve cash-flow.
Outsourcing your bookkeeping could be one of the most cost effective and beneficial decisions that a business can make. Investing in a bookkeeping service will not only save precious time but removes the risk of making very costly financial mistakes.
Here are some of the top level benefits that efficient and experienced bookkeeping can bring your business:
- It ensures you get paid by keeping a track of what is owed to the business and when it’s due
- It makes bank reconciliations easy and accurate which prevents banking errors causing financial problems
- It enables you to gauge whether the business is making a profit as opposed to making judgements on day to day bank balances
- It supports you to get financing when required. Reports generated from accurate bookkeeping are the foundation for evidence loan providers need to make a decision.
Not forgetting that peace of mind is one of the greatest things proper bookkeeping can bring to a business owner. The visibility of knowing that their bookkeeping is up to date and that they have the visibility of whether they are making a profit or not is priceless.
Here at Keen Dicey Grover providing peace of mind to our clients is the ultimate driver for us. By removing the day to day hassle of bringing books and accounts up to a high standard of detail and accuracy, we ensure our clients are informed and confident about their finances; therefore giving them the comfort and freedom of being able to concentrate on growing their business.
Keen Dicey Grover
We care……………. we really care