The Benefits of Good Books

Bookkeeping is defined as "the process of recording financial transactions in a consistent way". It might not be the most exciting part of running a business but it is a key component to building a financially successful business.

A business needs to produce "true and fair" annual accounts backed up with full and detailed records of all business income and expenditure such as receipts, invoices, orders, payments in and out etc.

10 good reasons to keep good books:

• It enables you to manage your business - if you don't have good records, it's much harder to make good decisions.

• It enables you to provide a good service - producing estimates, quotes and invoices promptly for customers could mean the difference between winning or losing a job.

• It ensures you know what you owe and to whom - no nasty surprises!

• It ensures you can see how your business is performing - where you are making money month by month and year by year.

• It helps you plan in advance for tax payments and other liabilities - set aside the money you need or make alternative arrangements in plenty of time.

• It enables you to find documents and information quickly and easily - no more time wasted hunting for a lost bit of paper.

• It can help to reduce accountants fees when preparing annual accounts - little and often is more straightforward than once a year.

• It can help to minimise tax - if you don't keep receipts you may find that you cannot claim the expense as being allowable for tax.

• Knowing your cashflow is vital - you know what you can afford and when.

• And last but not least - it complies with the law! Good record keeping is a legal requirement for HMRC and ensures you meet all your statutory obligations.

If you would like a free no obligation chat about how I can help you please email hello@thefinancefairy.biz or use the contact form on the website.