Three ways to significantly improve your bookkeeping

Bookkeeping is an essential part of running a business and deep down, we all know that but in the excitement of shiny new marketing campaigns and winning big clients, this necessary but admittedly dull task often gets overlooked. As mind-numbing as it might be though, bookkeeping has a whole host of benefits that business owners can reap the rewards of when done properly so we’re here to help your improve your process.

The importance of bookkeeping

Bookkeeping is a little bit like brushing your teeth every night or going to the gym on a Saturday morning. You really, really, really don’t want to do it and you could think of a million things you’d like to do more like watching paint dry. So you put it off for as long as possible and procrastinate like a pro to avoid it until the very last minute but when it’s done, you wonder what all the fuss was about. Just like cleaning your teeth and running on the treadmill, balancing your books can feel like a royal pain in the behind but if you stay on top of it, you’ll realise the positives far outweigh the negatives.

Better financial management – Having an efficient bookkeeping system in place, whether you prefer the digital approach or more traditional filing methods, is essential for the maintenance of a successful business. Strong bookkeeping will enable you to better manage what is coming in and going out of your accounts such as invoices, bills and other important transactions with increased accuracy. If your financial records are a shambles and your books are consistently imbalanced, your financial management will seriously suffer.

Better budgeting and financial decisions – Being able to manage and assess your accounts with such thorough accuracy will then enable you to make much better financial decisions. Being clear and concise with cashflow via a sound bookkeeping system will also help significantly when it comes to generating budgets, creating forecasts and realistically understanding what the business can and cannot afford.

Increased tax efficiency – When you stay on top of your financial accounts, you can also make sure that your business is always running tax efficiently and in line with any updated policies and legal regulations. Doing so will mean you can hopefully avoid any unnecessary penalties and crippling fines that might be incurred should you miss important deadlines on account of lax and inaccurate bookkeeping.

How to better your bookkeeping

Okay so now we’ve established just a few of the many benefits that come from keeping your bookkeeping in check, let’s look at what you can do better your existing processes. Whether you’re the nail-biting owner of a new start-up venture who has been desperately scouring the internet for some bookkeeping advice or an entrepreneurial veteran, following these simple pointers is sure to keep the infamous tax man off your back and give you some much-needed peace of mind too.

Get on board with the cloud – The cloud is essentially an external server where the user can store their financial data and access it at a later date from anywhere that provides a decent Wi-Fi connection. Unlike the arduous and expensive traditional methods of bookkeeping, cloud-based accounting is cost-effective, incredibly secure and far more accessible than software that can only be accessed through one computer. Cloud bookkeeping services such as Pandle enable you to be increasingly productive for a fraction of the cost.

Recruit the help of a professional – Too many people associate having an accountant as a luxury that they simply cannot afford. They think having an accountant is exclusive only to those large companies with big budgets and a whopping revenue. However this couldn’t be further from the truth and there are plenty of low-cost services out there which offer highly affordable monthly fees such as our own.

Our team of qualified professionals work in the industry day in, day out so they are well-versed in which techniques work well and which don’t. They will also be able to keep you up to date which any policy updates and official deadlines that you will need to adhere to when submitting your accounts. We also offer an expert bookkeeping service that will take the weight off your shoulders entirely and give you peace of mind as you leave it to the professionals.

Always stay one step ahead – Science suggests that anything you do for 28 days consecutively will become a habit and a habit is exactly what you need to make of your bookkeeping process. Be proactive and document any transactions and paperwork as you go along so you can avoid the mad scramble to get everything in order when it eventually comes to deadline day. Making updating your financial records a daily task to ensure that nothing goes unaccounted for and you aren’t left with some explaining to do.

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