What is bookkeeping and why it’s important for your business blog image

What is bookkeeping and why it’s important for your business

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Bookkeeping is an accounting process wherein a bookkeeping specialist or a bookkeeper will record the financial transactions of a business on a day-to-day basis. This process ensures that the financial records of a business, such as ledgers, journals, financial statements and income tax records, are in-depth, current, and accurate.

So why is bookkeeping important for your business?

It gives you a clearer understanding of your business’ financial health

In order to figure out whether you’re actually making any money or not, you need to have an accurate grasp on your business’ income and expenses. This will help you to make better financial decisions for your business before it’s too late.

Also, extensively documenting the past performance of your business will help with your valuation. Knowing your company’s valuation will help you to get a fair return should you want to sell your business in the future.

It saves you time when filing tax returns

By getting a bookkeeper, you can stop worrying every time tax seasons comes around. A bookkeeper will free you from the hassle of organising all your paperwork needed for your income tax return. They will record all your business transactions as you go. In addition, bookkeepers such as our Chan & Naylor bookkeeping specialists can give you great advice about tax, and even teach you how you can legally reduce your taxes.

It makes reporting to investors easier

Another benefit of bookkeeping to you as a business owner is it makes reporting of your business’ financial growth and development to your investors much easier. Your data can be neatly shown in graphs and charts to easily explain how your business growing.

In a nutshell, bookkeeping can help you to efficiently manage your business. It can mean the difference between having great financial success or becoming insolvent.

 

If you’re looking for a bookkeeping service for your business, contact a Chan & Naylor accountant near you, and we’ll be more than happy to help.

Aside from bookkeeping, have a look at our other accounting and advisory services that we do to help you achieve greater success.

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Chan & Naylor Group has nationwide offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your bookkeeping as well as any other business or personal tax enquiry that you may have. Contact us today.

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