An essential part of running a modern business, finding a quality bookkeeping provider can bring a number of benefits. But with additional pressures being placed on businesses, it can be easy to excuse putting additional effort into your organisational approach and adding costs.
So, why exactly should bookkeeping services be at the top of your list and why are they so essential?
Why is bookkeeping so important?
1. Long Term Analysis: Bookkeeping allows you to not only keep a tight reign on your budget but also enables you to gather useful data for long-term analysis. This helps you to understand what resources are being correctly assigned and potentially allow you to adjust your approach to see proper long-term benefits. This, in turn, allows you to construct a validated roadmap for your business for the next 5-10 years – empowering you to plan for the long-term.
2. Legal Compliance: Keeping full and complete records allows you to avoid issues around reporting tax and legal compliance, for your personal and business tax returns alike. Remember that HMRC are fully empowered to fine up to £3k and potentially disqualify you as a company director if your records are inaccurate or negligent. Taking the time to find a good bookkeeping service can save time and money.
3. Internal Effort: If you are running your own internal bookkeeping, this places significant resource pressures on your business. Hiring a fully qualified member of staff is essential and allocating the role to a existing member of staff can result in a drop in performance and quality for both of their roles.
4. Optimisation: Choosing an online bookkeeping system can allow you to not only gather, report, and validate data as required but also help you optimise your overall approach to daily work. Any reliable system will allow you to automate key tasks, enforce process steps and remove frustrating actions that human error inevitably causes. In short, adding a digital ‘stitch in time saves nine’ approach will save additional hours of paid overtime to solve a problem.
5. Future proofing: Choosing the right bookkeeping model allows you to not only remain compliant with current standards but adapt to accommodate any changes that may come down the pipeline. This can help with GDPR compliance, changes to legislation, or help mitigate issues around Brexit. Whatever you need, a reliable software package or provider can help you through it.
If you want to learn more about online bookkeeping and the positive change it can bring to your business, our team at One Click Accountant is here to help. With many years’ experience in accounting and bookkeeping, we work with you to find the solution that is right for your business and your unique needs.