Think of small business as a seedling. It requires much care and nourishment. Failing to provide attention will cause it to wither. The same applies to your business. Without tending to key elements of your business, it too could fail. You need to manage all aspects of your business for it to thrive and grow. Caring for your business finances is critical. To create and maintain a solid foundation, think bookkeeping. The benefits of bookkeeping for small business are numerous. A professional bookkeeper will help manage the day- to-day financial aspects. They will do this accurately and cost effectively. With this under control, you can focus on your core business – its’ operation and development.
Using a professional bookkeeper will also help avoid many problems. For example, they can identify issues that could accumulate over time. Here are a few more benefits of bookkeeping for small business for you to consider.
Having Organised Records of Business Transactions
Bookkeeping helps to maintain organised records of business transactions. The process records transactions in the correct accounts with proper tax codes. Additionally, it provides essential information for tax reporting. And that will help reduce that last-minute stress of finding business information. By regularly maintaining ‘the books’, a bookkeeper will help remove this barrier. Properly recorded receipts will help you stay in control of your business. This process will also ensure you will also have evidence on hand if you require it for audits.
Being Ready for Tax Lodgement
The ATO requires all businesses to file tax information on a timed basis. How your business was registered with the ATO determined the time frames you must comply with. This periodic filing of information on the sales and expenses for the business allows the ATO to then determine taxes. Using a professional bookkeeper will ensure this information on-hand for tax filing by due dates. A professional bookkeeper will also help ensure compliance with the ATO guidance. This includes due dates for the lodgement of Business Activity Statements (BAS), Fringe Benefits Tax, Income tax, etc.
Allowing you to budget accurately
A bookkeeper will organise the business income and expenses correctly. As a result, you can easily review the financial resources and costs for your business. This information can also be used to create a business budget that will be the framework for business growth. You can plan for business expenses required to generate a growing revenue. A budget can also provide guidelines for you to examine various situations that could arise for the business. For example, increases in transport costs or supplies can impact your budget. Having this accurate information on hand allows you to plan ahead.
Setting and Tracking Business Targets
Bookkeeping can help you set your business targets. Firstly, you need information related to expenses and income. This information can then be analysed. It can also be used to draw a financial roadmap. This financial roadmap will provide a pathway to achieve business growth. It can also help you track deviations during the business process. Knowing this will then allow you to identify any changes required.
Being Legally Compliant
A professional bookkeeper must always comply with current legal rules and regulations. A professional bookkeeper is accountable for any work that they carry out. As a consequence, by using a professional bookkeeper your accounts and ‘books’ will be compliant. Additionally, your bookkeeper can provide advice on mistakes and any corrections required.
Access to Instant Reporting
Bookkeeping for small business provides ready access to updated financial reports. These reports will provide current financial information. This means you can take action at the right time. A bookkeeper can also provide a variety of instant reports. As a result, you can track your progress in real time.
As you can see, there are numerous benefits for small business in using a professional bookkeeper. With your bookkeeping under control, you can focus on your core business operations. With time freed up, you can maintain relationships with various stakeholders. The necessary tracking of income and expenditure is easily done. Detailed bookkeeping will provide you with clear, current financial information. As a result, the information and knowledge will allow you to achieve business growth.
If you have questions about the benefits of professional booking for your business, feel free to contact us.