For start-up and SME business owners it is important that there is a good, solid understanding of finances.
From your outgoing expenses to payroll and VAT, business finance is complex but by carefully managing and understanding each area you have a better chance of ensuring that your business is less likely to struggle and instead continues to grow.
Solid financial management is an important part of any business, however understanding it all can be somewhat overwhelming. As a result it is no surprise that many choose to outsource to specialist financial experts.
Balancing the books in business
Hiring an accountant or outsourcing is a great solution and can ensure that your finances are in the best of hands. However, it is important that as the business owner you do not forego complete understanding and responsibility after-all this is your business.
Tax returns, VAT and payroll can be difficult to understand but as the business owner, one of the most important financial obligations you should aim to come to grips with is bookkeeping.
Not sure what you need to know?
· Bookkeeping is the process of maintaining detailed financial records.
· Bookkeeping is a legal requirement enforced by HMRC.
· HMRC can inspect any business at any time which is why records should be regularly updated.
· Bookkeeping includes recorded all business incoming and outgoing finances, cash expenses and any other business expenses that may include property rent and payroll.
· All details must be recorded accurately and in a standard approved by the HMRC.
How can bookkeeping boost business?
Bookkeeping is a fantastic way to keep on track of business finances and by doing so, not only are you ensuring your business does not face any legal action by HMRC you are giving yourself the best chance of growth.
Well it is actually quite simple; by recording every financial move your business makes you can catch any problems before they develop.
From something that may be costing your business too much to a charge that appears to be getting bigger with every month, with bookkeeping you can keep a close eye on exactly what is happening. From cutting costs to chasing up invoices, with accurate books you have a far better chance of keeping your business sailing towards success.
Loosing financial control should never be an option whatever your business which is why bookkeeping is of great importance.
Whether you outsource or attempt to do it in-house; are you managing the books correctly?