Why bookkeeping is essential for your small business

As a small business owner, you may be wondering whether or not you need a bookkeeper, an accountant, or both?

Bookkeepers can seem a little mysterious. In fact, they deal with the organisation, the recording and the reporting of financial transactions. Simply put, a bookkeeper clears the way for the accountant to work with your business strategically.

This means: keeping track of daily transactions, sending and managing invoices, handling the accounts payable ledger, keeping an eye on cash flow, and preparing the books for the accountant. Bookkeeping in a small business can also include payroll – All of which will make it easier for you as a business owner to concentrate on the bigger vision for your business and to work with your team and/or accountant to ensure growth where needed.

Accurate, up-to-date financial records are vital for running a small business. They let you keep tabs on spending, help you plan and budget, avoid cash-flow issues and identify payment issues that could be costing you money. Even more importantly, well-kept books are a must when it comes to completing accurate tax returns and working with lenders.

Simplifying bookkeeping with software

In the past, business owners recorded sales in a ledger, kept paper receipts for business purchases, and cross-referenced bank statements by hand. Now, accounting software can take on many of those tasks, and also save you so much time and money. Read our 8 ways to save time (and money) blog post to find out more.

Here are a few ways having an accounting software can simplify bookkeeping:

  • Recording sales: information flows straight from a point-of-sale or invoicing system into accounting software
  • Tracking purchases: business purchase data can be automatically recorded
  • Reconciliation: is quicker and more accurate
  • Invoicing and bill payments: can be completely automated, making it easy to spend time focussing on other business matters

Examples of accounting software are Xero, QuickBooksOnline, FreeAgent and Sage. Take a look at this small business guide from Xero where they explain more on how a bookkeeper and accountant can help your small business.

If you need help getting your books under control, we offer expert bookkeeping support from our accounting team. Our bookkeeping service can be included within any of our business packages.

023 8000 1313