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What is bookkeeping?
By definition, bookkeeping is the process of recording your, or a company’s, financial transactions and is the first, basic step of the accounting function. Based on this, bookkeeping is the foundation that your financial information and accounts is based on and as such is a vital part of any business whether small or large.
Running a business and keeping on top of its finances can be a stressful and arduous task. Losing grip of where your business is at financially will ultimately result in the failure of your business; therefore keeping your records in order is crucial to the future and longevity of your business.
How will bookkeeping help you
As already mentioned, bookkeeping is absolutely essential to understand where your business is at financially and helps you make the important decisions that define the future of your business. Using computerised accounting software, you are able to quickly and effectively obtain information about your business, allowing you to get a better understanding of where you are able to increase revenue and decrease costs. Having access to valuable data will help you plan effectively and accordingly for any future endeavours with your business.
Another advantage of maintaining your records is the fact that failure to keep comprehensive and accurate records could result in incorrect information being supplied to HMRC and consequently being penalised and fined. Maintaining your records will not only reduce your stress in the long run, but will make sure accuracy is intact and reduce the risk of incurring penalties.
Accurately maintaining your records will ultimately save you money. Bookkeeping consolidates your invoices, receipts, expenses, payments and other financial information into one easy-to-use format. When it comes to the end of year and completing your taxes, having your information and transactions already formatted and calculated will prove invaluable; it will save you time, money and stress.
If you are wanting to get a tighter grip on your finances, CJR Accountants in Grantham can help. Please contact us by phone/WhatsApp on 07827328064 or email info@cjrtax.co.uk.
