The Importance of Good Bookkeeping for New Businesses

accounting

The Importance of Good Bookkeeping for New Businesses

Illy Smith No Comment
Business

It can be very easy to get caught up in the thrill and chaos of starting a new business.  The initial months will be a whirlwind of new clients, problems to solve and exciting developments; which means that some of the more mundane, day to day aspects of running a business can fall by the wayside.  Keeping on top of your financial situation is pretty much the biggest make or break factor in surviving as a business of any age and as such ensuring that you have accurate records is essential. 

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Bookkeeping – It’s no fairytale 

There is a real art to bookkeeping; with the need for a keen eye and attention to detail both being essential attributes to have.  You need to make sure that all of your transactions are being recorded, both incoming and outgoing, so that the financial health of your business can be seen at any time.  A failure to record your transactions properly can lead to a lot of problems occurring very quickly.  As a simple example, if you have an inaccurate record of how much money you have available to you, then overspending is almost guaranteed. 

Do it yourself? 

Whilst it is perfectly possible to undertake the task of bookkeeping yourself, if you are in the throws of running a fledgling business then you are going to have a lot on your plate.  Compromising the accuracy of your bookkeeping is something that you cannot afford to have happen, so if you are able to find a good bookkeeper to take on the task for you, then it is one less thing for you to worry about.  Having the responsibility of the bookkeeping taken off of you will allow you to focus more on the running of the business, and allowing someone with a lot of experience handle your records will mean mistakes are considerably less likely. 

Bookkeeping

Benefits and drawbacks 

The obvious drawback to employing the services of a professional bookkeeper is the cost.  No matter how much time it takes you to do the books, it won’t cost you any extra to do it yourself.  However, if you choose to look for a bookkeeper, then using a reputable company, such as Prime Numbers Accountants, will give you options.  Companies like this are very aware of the challenges facing new businesses, and will have various packages and service options available to help you find a balance that works.  On top of the purely practical reasons, a good bookkeeper should also be able to prepare your company for an audit and ensure that there are no complications on that front as well. 

Ultimately, having accurate and current business records is essential and if you have been managing without this until now then luck has clearly been on your side thus far.  Even if you choose to do your own books, make sure that you stay on top of it so that your business has the chance to succeed on its own merits, rather than being dragged down due to neglected bookkeeping. 

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