8 COMPELLING REASONS WHY YOU NEED ACCOUNTING AND BOOKKEEPING
Bookkeeping and Accounting are vital to any business because it makes it so much easier to plan for the future for example the following year. With your income and expenses properly organized, it’s simple to review your financial resources and costs. A budget creates a financial roadmap for your business.
The bookkeeping function is a crucial aspect of your business’s financial management. Despite this, some business owners prefer to take care of their accounts on their own. They not only lose valuable time, but they also increase the possibility of compliance issues that might ultimately cause their business to lose money in terms of penalty and interest.
The responsibilities of a professional accountant extend beyond bookkeeping. Accountants help simplify your company’s financial operations and planning so that it can manage its cash better and generate a greater profit.
This article explores the 8 Compelling Reasons Why You Need Accounting and Bookkeeping for your business. Let’s check it out.
- Accounting and bookkeeping enhance the growth of businesses
You will have a better understanding of your company’s financial health if you handle your accounting correctly. To support business growth, you can use this information to make informed decisions. Furthermore, you will gain a deeper understanding of the feasibility of crucial decisions. The decision-making process may include, but is not limited to, deciding when to open another branch locally or overseas or perhaps hiring a new team member.
Having your company’s cash flow and seasonality highlighted by a credible accounting firm helps you better understand your receivables and collections. You can greatly improve financial planning and forecasting by partnering or by taking the services of an accounting firm.
By establishing a sound accounting system, your company can begin to understand its performance and make strategic decisions with greater ease, which puts the business on the path to success.
- Accounting and Bookkeeping Save Time and Money
There is a common saying that time is money. ‘When you have good accounting and bookkeeping procedures that generate accurate information for you on a timely basis. You are able to detect irregularities, fraud, errors, and mistakes on time thereby making recovery or correction easy. This will also assist in making decisions to prevent the occurrence of such in the future.
Of course, this also saves you money that would have been lost. In addition, an analysis of your financial statement
Engaging the services of a professional accounting firm can help you to eliminate these concerns. With a monthly service fee, you can access the expertise of a team of accountants adept in various areas of accounting, such as tax management or bookkeeping. Thus, you can reduce hiring costs along with the time it takes to train recruits. Furthermore, your company will avoid losing employees due to turnover or costly errors.
- Accounting and Bookkeeping help to keep up with statutory requirements and regulations
It takes time and money to operate a business. There is nothing worse than being in trouble with the tax authorities, which could lead to a tax audit, penalty, interest, or worse.
Tax reporting is becoming increasingly complicated and time-consuming as businesses grow as it entails payrolls and profit and loss statements, amongst other aspects.
A professional accounting firm understands tax laws and procedures in Nigeria, making it easier for you to avoid potential pitfalls. Their expertise allows them to detect irregularities quickly and to ensure your accounting records are error-free, enabling you to remain compliant.
- Make the most of your deductions and savings
In addition to keeping compliant, outsourcing your accounting to a professional can allow you to take advantage of tax breaks and exemptions that you may not be aware of.
Additionally, if you are doing business overseas, you may not be familiar with a number of tax treaties. Double taxation can result, in making you pay more taxes than necessary.
A professional accounting firm can provide you with advice on all your tax benefits as well as help you make the most of them minimize costs and maximize profits.
- Accounting and Bookkeeping aids Organization of Business Processes
The three major functions of business are Production, Marketing, and Accounting. All these are critical to the success of a company. However, accounting serves as the coordinating factor of the three. One does not need to be an accountant before realizing this because the essence of any business venture is to create value measured in monetary terms. In fact, some people called accounting ‘SMART BACK OFFICE’.
Accounting should be the guiding language for your business. Your accounting system should give you the critical information you need to make necessary decisions concerning all aspects of your business.
- Accounting and Bookkeeping help in Scaling up your business
As long as your business is just you, at least handling taxes and bookkeeping might be sensible. How do you handle the case when you need to hire freelancers or subcontractors for a big project? Your financial situation may become more complicated.
You’ll be amazed by how easy things will be when you let a professional accountant handle your bookkeeping.
- Accounting and Bookkeeping assist in staying focused on your strengths
In the beginning, why did you decide to start your own business? It’s unlikely to have been accounting unless you are an accountant.
While doing things unrelated to your passion, it’s hard to focus on what you’re passionate about. You can spend more time doing what you do best – and focus on your areas of expertise. Hire an accountant or bookkeeper to free up your time. You can’t put a value on that.
- Accounting and Bookkeeping expert knows everything there is to know
You might feel that as a business owner you are the only one who can understand and manage your business. That’s actually quite common. Additionally, it’s also common to feel embarrassed about how sloppy your bookkeeping is.
Despite this, know that we have handled everything from perfectly preserved books to shoeboxes filled with receipts from the past five years. A professional bookkeeper can manage your books regardless of their current state.