Bookkeeping has been an essential part of doing business since us humans began trading so why do some business owners make life hard for themselves and avoid hiring a bookkeeper? Here are reasons why bookkeeping should be considered an essential part of your business activity.
You gain control of your accounts
Bookkeeping is an essential foundation to any business. It helps not only deal with the past but also the future and everything in between. If you don’t have anyone to do the bookkeeping you will be left Guessing where some of your income and expenses came from when completing your tax returns.
You can make accurate forecasts
If you don’t do bookkeeping it makes it difficult to forecast what your likely income and expenses will be for each year as you probably won’t have the time to sit down and be honest with yourself about the direction your business is heading in. Not planning ahead with accurate cash flow forecasts can be catastrophic for a business.
You will save a lot of time
Good bookkeeping is like good housekeeping, it’s one of those things you don’t notice until it isn’t there and you end up trying to do it all at once!