Bookkeeping is a crucial aspect that supports the core financial process. It also makes the lives of accountants a little easier and helps to bring down the cost of year-end accounts. By keeping accurate records of financial transactions throughout the accounting year, a lot of the information will already be readily available for your accountant, which can save time and money.
Below are some of the advantages of having a professional bookkeeper to help manage your finances and paperwork on a daily basis;
Detailed records:
Detailed, centralised financial records make it easier to oversee and track business account balance sheets, which ultimately speeds up financial year end reporting. Comprehensive records also simplify financial or tax audits because relevant information can be located more quickly and at lower cost.
Improved compliance:
Competent bookkeepers make sure their work complies with the latest legal and accounting requirements applicable to their business and industry, thereby avoiding fees or penalties for being out of compliance. That means all accounts, ledgers and financial statements adhere to the latest tax codes, provisions and any accounting regulation specific to a business’s industry.
Better planning:
Solid bookkeeping data leads to better accounting and business decisions based on a complete understanding of the company’s performance. With a detailed record of their business’s accounts and their income and expenses, finance teams can be confident in the data used to inform their reporting and future planning.
Transparent reporting:
Bookkeepers keep their business’s general ledger updated at all times. For their part, accountants can present that data to business stakeholders when creating financial reports, be it for a monthly close or ad-hoc information requests.
Faster analyses:
Accurate, up-to-date records help accountants do their job more quickly, whether they are creating financial statements or helping to develop a budget for a future project.
Bookkeeping is the glue that holds your large or small business together.
Professional bookkeeping positively impacts the financial health of limited companies. By maintaining detailed records of transactions throughout the accounting period, it streamlines the preparation of statutory accounts and tax returns. Accurate bookkeeping ensures compliance with legal and accounting regulations, minimising the risk of penalties for overdue payments.
Moreover, it enables better planning by providing a comprehensive understanding of income and expenses. With transparent reporting and timely analyses, businesses can meet reporting deadlines efficiently. Ultimately, proficient bookkeeping serves as the cornerstone of financial management, supporting businesses in making informed decisions and optimising their operations.