Although bookkeeping isn’t regarded as the most exciting or creative aspect of running a small business, it is a critical process that must be performed daily in order to generate the financial data needed to make business decisions. Do you carve out time each day to record your business’ financial transactions?
Keeping clear and accurate records on a daily basis allows you to:
- Prepare current financial statements
- Assess your business’ financial situation at any given time
- Control cash flow
- Measure actual business performance against original budgets or projections
- Recognize new problems, challenges and opportunities as they arise
- Track employee performance
- Make informed business decisions regarding financing or expansion
- Save time and effort in the future when summary information is required by third parties
- Fulfill compliance obligations required by law
An effective bookkeeping system can turn your financial records into a valuable management resource. Since no business is exactly the same, no bookkeeping system should be exactly the same. To be effective your bookkeeping system should be:
- Uncomplicated, logical and user-friendly
- Thorough and accurate
- Easily accessible
- Integrated into your daily business routine
- Consistent with the size and nature of your business and industry
If you don’t have the time or inclination to make bookkeeping a daily habit or if your small business grows and becomes overly complex, then you may need to hire an accountant. The daily information they can accumulate will help you make better informed business decisions and contribute significantly to the overall success of your business.
Contact Flexible Accounting Services of the Triangle today and let us help you with all your bookkeeping needs. We can develop a bookkeeping system for your business or provide you with professional bookkeeping services from our experienced staff.