What is bookkeeping?
Bookkeeping is the process of recording all your financial transactions. It is the first step when dealing with accounts it is the first step to help grow your business. Here are some of the reasons why bookkeeping is important
To Save Money on Tax:
If you log your financial transactions correctly, you know exactly what your expenses are. When it hits that time to fill out your tax return it will make the process easier and will save you a great deal of hassle. If you set aside, you expense and filling them into a folder when it coming to your tax return you can know will have a rough idea of how much you are entitled to claim back. If CIS where to follow up on your claim they would be able to verify your claim.
The Possibility to Grow:
Knowing your financial status, you can see what money you have available. Bookkeeping allows you to compare how the business performed compared to the previous year, it will provide the information to know whether can afford to hire new staff or reinvest to lower your costs attracting more business.
To Reduce Your Stress Levels:
Keeping good records will keep you level headed as you know the financial situation of the business. You will not be stressed if you know that your expenses are filled away. Being more organised and will benefit the financial status of the business. It will lead to sensible decision making because you know the financial status.