If you’re a regular reader of our blogs, you’ll know that good bookkeeping is the firm foundation which underpins any successful business. Organising and maintaining your financial records is crucial to the smooth running of any company, but it’s also an important part of helping business owners make decisions which will have a favourable impact on future expansion and success.
Collecting receipts, keeping track of invoices, rigorously enforced petty cash rules, a constant eye on cash flow and conscientious data entry will keep things on track and should mean worrying situations don’t crop up when they’re least expected. If you’re on top of all of these, then you have at your fingertips the key information about the financial health of your business that you need to plan for.
Perhaps you are considering investing in an expensive new piece of machinery which will double the output of your factory. You may be a successful sole trader thinking about taking on an employee to help shoulder the workload. Or you might be wondering if now is the right time to expand and move to larger premises – should you consider a business loan to facilitate this? All these are important commitments which can’t be undertaken without a clear overview of exactly how your business is performing.
With all the crucial details to hand, you can review your profit margin and take an informed decision as to whether it will support the project you have in mind.
A keen eye on your bookkeeping can also help you analyse trends and influences in your industry sector which can affect budgeting decisions. For example, if your business makes artisan ice cream for supply to local beachside cafes then you are inevitably going to see seasonal peaks and troughs. It’s much simpler to manage these and factor them into an annual overview if your data is reliable and well-organised.
Another advantage of keeping on top of bookkeeping is the up-to-date information it can instantly give to anyone with an external interest in your business. If someone is considering investing, they will want to know your exact financial situation. The same applies to regulatory bodies, government agencies, and of course HMRC, which will require regular and accurate tax information and imposes penalties for non-compliance.
There’s no doubt that a well-run business which takes sensible commercial decisions is usually backed up by conscientious bookkeeping. It needn’t be a hassle – bookkeeping software is readily available which provides integrated accounting, payroll and payment systems, and can deliver an instant cash flow summary directly to a mobile phone or laptop.
At AMR Bookkeeping Solutions, our expert and friendly team can give you all the assistance you need to balance the books. Contact us on 01892 559480 or check out our website to find out how paying attention to your bookkeeping can pay real dividends for your business’s future growth.
