BOOKEPER FUNCTION

Generate invoices and receive payments from customers

Bookkeeping tasks provide the records necessary to understand a business’s finances as well as recognize any monetary issues that may need to be addressed.

Track debits and credits for various accounts.

Completing payroll functions.

Proper planning and scheduling is key since staying on top of records on a weekly or monthly basis will provide a clear overview of an organization’s financial health.

A budget creates a financial road map for your business. With a budget, you can plan for future expenses and the anticipated resources that would cover those expenses. When income and expenses are correctly organized, it makes it easier to review financial resources and costs.

Legal Obligation

It is the bookkeeper’s job to ensure that the business is paying adequate tax, wages and National Insurance contributions are kept up to date, with every important transaction appropriately recorded to prevent any discrepancies with previously submitted tax returns.

Cash Flows

Bookkeeping helps to make the cash flow management useful as it depicts the sources from where the cash flows are coming and use where cash is spent. Many businesses get hit by unexpected cash crunch which can only be resolved through bookkeeping.

Six Reason Why Bookkeeping is important

Investors

Many businesses rely heavily on investors to help their business grow and become successful, but these investors need to know that their money is in the right place. Bookkeeping ensures that investors can access detailed reports about the company’s financial status in order that they can feel confident in their investment.

In analyzing your financial statements, you can easily manage your profit and loss. By practicing bookkeeping, you can assess your business performance and identify your strengths and weaknesses..

Failure to keeping tax affairs updated may lead to serious repercussions and huge fines and litigations. Hence, to avoid such fines and litigations, bookkeeping plays a pivotal role to provide the required date in a well-presented manner and on a timely basis.