Why Bookkeeping is Essential for Small Businesses

by Brook J. i love to write

The one question we hear more often than any other in the world of accounting and bookkeeping is something along the lines of – “my business is still small – do I really need bookkeeping services?”.

As a company who sees first-hand just how often these services can make or break fledgling companies in pursuit of success, we cannot emphasize the answer enough – yes! There is a plethora of reasons why bookkeeping services can provide small businesses with a safety net of sorts, safeguarding their operation for years and decades to come.

Taxes

Many small business owners initially become confused when determining which taxes they are obligated to pay HMRC – and to what extent. As a company who understands the intricacies involved with accounting, let us tell you that it can be downright impossible in many cases to determine exactly which taxes and what amounts are owed without proper bookkeeping. Ask Chartered Accountants York for more!

At least, until the tax men cometh! You can bet that they will know which taxes you owe! This is one enormous benefit of proper bookkeeping; it will protect you in the event that you accidentally underpay (or overpay) and ensures your tax obligations are fully covered.

Profits

It doesn't matter how well somebody can balance spreadsheets in their head; if they fail to keep accurate records of expenditures and receipts, then a business' bottom line can be threatened. It's not uncommon to see business bank Accounts York suddenly run dry because of sloppy paperwork.

Crusty invoices and coffee-stained receipts aside, determining a business' profitability – especially in instances where margins are thin – can be immensely difficult without professional accounting services. We have seen numerous small business accounts in York, and beyond, find themselves on the verge of collapse because of amateur accounting errors. These errors could have been easily avoided had these businesses used professional services.

Financing

Even the most successful small businesses often need capital and financing in order to grow. Without access to this life-line, many businesses fail to thrive. Unfortunately for those small businesses lacking proper bookkeeping or Accountancy York, obtaining a loan of any sort can be impossible.

Most banks and financial institutions will not lend money to businesses that can't actually prove their expenditures and receipts in a proper manner. We’ve had numerous businesses approach us in need of services solely because they were denied access to financing as a result of shoddy accounting practices.

Give us a call today at 01904 655202 and we'll get to work on sorting out any and all bookkeeping needs.