Sunday, 7 June 2015

Importance of Bookkeeping Review for Business

Importance of Bookkeeping
Bookkeeping is often considered as great time wastage by most business owners.  Yes, it is true that bookkeeping need lots of your business critical time but it is equally important.  

Bookkeeping for small business is an essential part of any business operations, it helps keeping track of all the financial transactions of the business. Bookkeeping a  tedious and time consuming tasks  is often keep you distracting from business.

We recommend several ways for you to keep your books nice and tidy.

1. Be Serious and Stay Serious toward Bookkeeping
To make your business you have to be serious towards managing your finances. When we talk about finances, I mean by time you invest, money you owe from customers and money you owe to suppliers.  Any imbalance in finances can ruin you. One system that can save your business is "Bookkeeping"  and proper bookkeeping.

To make it more clear and precise "As you can’t go without eating, your business can’t go without bookkeeping".

Bookkeeping is a system used to balance your money. It is really the only system that can give you reports like how much you earned , how much you spend and where.
2. Use an Outsourced Bookkeeping Service

Understanding  the importance of  bookkeeping for business is only the first step.  The next step is how to  do  it. Oh yes, you can do it yourself bookkeeping a not a rocket science for business owners. Almost all business owners keeps tracks of money by maintaining a note book or several slips. For bookkeeping you only have to refer notebook, slips, bank statements, purchase bills, invoices etc and collate them systematically in order to generate  useful financial reports. Uhhhh…. this is a big job. Wish! You can do it yourself but you do not have time to compile all slips, bills, statements together. In a pinch, it’s easy to let things slide and then find yourself back at square one, sitting in front of piles of paper.

Solution : Hire bookkeeper and do a cost benefit analysis on following 3 factors:

  1. Your time value Vs Time value of bookkeeper;
  2. Cost of Bookkeeper working in your office; and
  3. Cost and benefits of offshore bookkeeping service.

3. Do In-Depth Monthly Review of Bookkeeping

Inculcate habit in yourself to do a monthly review of financial statements. It helps you to understand you business and one way to “get serious” about your business growth. A disciplined habit of review help you to plug and clean loop holes in the process before they become serious for the business as a whole.
Monthly or regularly review  keeps o n top with  redundant, tedious and time consuming bookkeeping activities. It is really the one  activity that  will keep your business in good health.

Don’t neglect bookkeeping, if you are short of time and resources consider Offshore bookkeeping for accurate bookkeeping and financial reports for your business.