Bookkeeping is the recording of your business transactions on a daily basis so as to be able to make informed business decisions and track your financial performance. Its importance cannot be overlooked. Bookkeeping helps you to know the project to embark on, budgeting, financing and so on.
Bookkeeping is so vital to your business that its absence can lead to improper financial management and pitch you against HMRC.
As a small business owner, you are more interested in making money than monitoring your finances; however, keeping proper records of your financial is also important. Every business is also necessitated by law to keep accurate financial records and with various small business accounting software available now, the traditional task of recording financial activities have been automated. Integrating accounting software with bookkeeping makes it more efficient and easier to get any financial record you need in real-time.
However, you need to know and decide if you need accounting software for your bookkeeping functions.
While some business owners are comfortable handling their financial records, working with excels or manual reconciliation with bank statements, many business owners are simply bad at it. If you don't like calculations, or you can't go through the rigour of manually recording and balancing your accounts, accounting software will help you out. Accounting software will help you do the calculations; you only have to input the data.
Can't keep track of your money, products, cash inflow and outflow, customers' records, etc? As your business expands and your customer base increases, you need a strong system in place. If you are missing the deadline to make payments or supply customers, you need accounting software. Accounting software will save you the time spent on tracking financial information and remove human errors. With accounting software, you can easily access any information you need.
Keeping a proper record of your documents is vital to making the right decision and to file your tax returns. Messy documents can cause sloppy accounting and affect your tax deductions. You can miss out on vital business transactions when computing your accounts. If you are always looking for important invoices or receipts, it is time to opt for an accounting software. With the software, all your transactions are properly recorded and secured.
After you have decided whether or not you need accounting software for your business you also need to determine the features you need, this will help you to choose the accounting software you want for your business. There is a different accounting software for each type and size of business.
Lukro Ltd offers professional bookkeeping services with cloud-based accounting system. This gives our customers the opportunity to access their records from wherever they are. We work with various accounting software such as Xero, QuickBooks, Capium and Sage. Customers can also upload scanned documents on their portal and we handle the rest.
Whatever the type of business you own, don't get too hung up with the bookkeeping requirements. Focus on what you know how to do best - making money, why we take care of all your bookkeeping needs at an affordable monthly fee.
Written on 2019-03-14
This article was written by Agnieszka - a professional bookkeeper with several years of experience in the financial service industry. Agnieszka works with Lukro Ltd, the accounting and bookkeeping company provides professional and friendly bookkeeping and business support services to individuals, sole-traders, partnerships, and small businesses. We help welders, plumbers, engineers, electricians, hairstylists, beauty therapists and many more.
Starting a new business requires you to have proper planning, make necessary financial decisions and get the necessary legal documents. It can look a bit complex, especially for new small business owners; however, by taking informed steps, you can begin to build your business.
A common misconception is that bookkeepers and accountants are the same. To hire the right expert for your business, you must understand the differences between an accountant and a bookkeeper.
Bookkeeping is the daily recording of business financial transactions, which include income and expenses. It is necessary because it helps to measure the performance of the business. Proper bookkeeping makes it easier for companies to keep track of all their financial information.