Book-keeping is the systematic recording of business transactions. It is necessary that every business keeps appropriate records on which to base year-end accounts and tax calculations. Indeed, it is a legal requirements that Limited Companies keep records of income and expenditure, assets and liabilities, to enable the Company’s financial position to be established at any time.
However, book-keeping can be much more than just a record of a business’ activity:
· Up-to-date and accurate books can enable a business’ owners and managers to have a clear idea of where a business is, but also where it might be going. Cashflow is the biggest killer of small profitable businesses. Good books might show you that you owe more than you are owed: Future cashflow issues can be seen, and dealt with, before they become a problem.
· Cashflow forecasts, budgets, and business plans can be built on accurate historical records.
· Accurate management accounts can assist in seeing where a business is profitable, and where it is not. Focus can be shifted away from wasteful and non-profitable activity, to concentrate on areas that make more money for the business. Areas to make savings can be identified.
· Book-keeping can reveal things about your business that you didn’t know. Financial patterns emerge: What’s the best-seller? What’s the most profitable product or service? Who are the slow payers? Which are the slow months? Why has that customer short-paid that invoice? Why had I not noticed?
· For small owner-managed businesses, accurate books can assist in deciding how much can be drawn from a business. Tax problems arising from drawing too much from a Company can be avoided.
· If the tax man does take a look at your affairs, you are prepared: peace of mind.
Book-keeping can be a massive and daunting burden, especially if a business owner or manager is inexperienced or nervous about taking it in.
We can undertake this process for you, leaving you to concentrate on making money, or enjoy more spare time. We will look at the most appropriate system for your business, be it simple ledgers, or a more sophisticated package, such as Sage or Quickbooks. We will ensure that you get maximum value from accurate and timely bookkeeping.