Running a business is about understanding what is going on in the business and about meeting your business goals. You can make the right financial decisions for your company if you have the right records of all your business’s financial transactions. This is why record-keeping is a must in every business, whether it is small or big. As a business owner, you might not be able to focus on the record-keeping process of the business. Due to this fact, it is important to hire a Melbourne bookkeeper for your company. In today’s blog, we’ll discuss the importance of record-keeping and how a bookkeeper can help you.
What is a Financial Record-Keeping?
As per the law, every business must have updated financial records that take place in the company either on paper or electronically. Various business benefits can be gained from keeping the right financial records, such as it saves you money and time when you need to make financial reports. In addition to this, it makes sure you only pay the tax you are liable to and helps you keep track of financial activities. By opting for Melbourne bookkeeping services, you can be sure that all your financial records will be kept and maintained properly.
How does a Bookkeeper Help You Manage Business Records?
If you are not able to keep a record of all financial transactions, then you can hire a bookkeeper who will manage everything on your behalf. The following is the list that shows what a bookkeeper will maintain for your company:
- Sales Invoices and Receipts: The bookkeeper will include all invoices and receipts of sales for offering services and goods as well as cash register tapes and cash sales.
- Purchase Invoices and Receipts: These records contain the records of purchases by the company and bills payment, including utility payments.
- Staff and Wage Expenditure: Bookkeepers of Melbourne will save all the details of the wages and salaries paid to employees.
- Banking Details: It is important to maintain your business’ bank account details and credit card statements. Ensure to have a separate business account and personal account to avoid conflicts with transactions.
- Basic Accounting Details: Every business needs to have a record of its financial statements, such as cash flow statements, profit and loss statements and balance sheets.
- Tax Returns and Reports: Your bookkeeper will be responsible for recording tax returns lodged annually. In addition to this, accurate records will help tax return accountants to prepare and lodge tax returns on time.
- Inventory and Asset Records: At the end of the year, the details of the stock must be stored accurately and the information of the assets bought and improved for the calculations of capital gains and losses.
Why is Record-Keeping Important?
By opting for bookkeeper services in Melbourne, you can be sure that the financial records of your business are accurately managed. With accurate record-keeping, you can get the following benefits:
Prevent Fraud or Theft
The record-keeping process allows you to prevent fraud or theft by maintaining detailed financial records of your business. When you have an updated record of your income and expenses and the cash flow of the business, then it will help you know what is going on in the business.
Pay Taxes on Time
Maintaining business records will allow your tax accountant to prepare and file tax returns on time on your behalf. As a result, they will help you avoid paying unnecessary tax penalties.
Cash Flow Management
Liquid assets and cash are important factors in financial management, especially when you want to grow your business. Healthy cash flow management can help you prevent unwanted situations in the long run. This is where record-keeping comes to play its role as it helps you identify and understand the accurate prediction of your business’s finances.
Every business must have updated financial records as they can benefit from these records and grow their business. Additionally, you can make the right financial decisions for your business that would be beneficial for your company. Thus, it is important to hire a bookkeeper for your company to help you keep your business books and financial records updated. You can also contact Reliable Bookkeeping Services provider to get bookkeeping solutions for your company.