Why Is Bookkeeping So Important?
Bookkeeping is significant in any business small or large in size. It is sad to say, this procedure is often unkempt which has a straight adversative effect on the business. In fact, conferring to CPA South Africa, some businesses flop due to financial negligence while other has feeble or no accounting records or books on hand.
Now What Did You Say Bookkeeping Is?
Bookkeeping is the procedure of recording your or a business’s financial transactions and the first basic step of the accounting process. The accounting process includes classifying, reporting and analysing of data and none of it can take place if there is no organised and accurate bookkeeping. The significance of bookkeeping cannot be stressed enough, but here are top reasons why this is vital to the wellbeing and life of your business. Here are few reasons why you should ensure your tax is handled correctly:
Improved business analysis and management
Cash flow organisation is one of the most imperative things you need to focus on. Irrespective of the fact that you are busy, as soon as your accounts are delayed, no follow-ups on customer payments and dropping out on a supplier’s list of customers will ultimately crash your business down. Bookkeeping can organise it up from up-to-date follow-ups, billing and on-time payment for suppliers.
Tax Obligation Fulfilment
Bookkeeping keeps track on any info and papers in order to achieve annual taxes. You do not have to rush any longer to find all those bills or try memorising expenses when tax time comes. Tax revenues are also made stress-free with a prepared Balance Sheet, Cash Flow and Profit & Loss, your tax consultant will dedicate time in giving you complete tax advice instead of modifying entries in the financial statements.
Reporting to Investors
The procedure of reporting to your investors on critical information about the financial status of the company is no longer a concern. From charts, graphs to lists of information offered to the investors are all assimilated from the book of account.
To achieve all these, you can lease a bookkeeper or accountant to do it and keep your financial facet together and organized. Bookkeeping can spell the variance between success and bankruptcy and can also factually mean thousands of dollars for your business. So please take a look at C-Tax for all your bookkeeping requirements, whether it be a large business or even a small one C-Tax sees the importance of your business’ financial side.