Record keeping enables effective and efficient accounting. For any organisation, having a good system in place makes the accounting process much simpler. It saves time and money.
Why accounting and record keeping are vital:
Enables easy management – For an entrepreneur, having to stress about various aspects of running a business is often heavy enough. This is why having their books in order will make it much easier to be able to focus on innovation and development.
Helps to stay organised– The worst thing for an organisation is losing a client over something that could have been prevented. Clients want to have confidence and good accounting and record keeping will make this easier.
Makes it simple to retrieve information and documents simply– If a company is being audited, there will be a number of documents required. These should be stored safely and in a way that makes theme simple to retrieve for authorised personnel.
Makes it easier to get a bank loan or overdraft –For a company interested in expansion, having access to a loan will be useful. Lenders will thoroughly assess credit applications and this includes financial records.
Helps with tax planning- For an entity that is keen to find ways to maximise on taxation, having well-organised records is essential.
Helps save time and reduce fees you are paying an accountant – For a small business owner, the last thing needed is a large expense for accounting services when there is no need. If there is a way to make this process more efficient, then one should do so in order to save valuable time and money.
Complies with the law – Having good accounting and record keeping systems in place ensures that the company is always fully compliant with regulations.