5 Reasons Why Your Business Needs Bookkeeping App

Bookkeeping somehow sounds intimidating. It’s like a very technical financial term that many are intimidated by and not aware how it is super critical and important to have one for your business. To begin, do you know what bookkeeping is?

What is Bookkeeping, in brief!

Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. Do you need an accountant or bookkeeper for it?

It depends on the scale of your business and also the capacity for your company to hire.

Now, let’s jump into 5 reasons your small business needs a bookkeeping system!

 

1. Accurately record all financial transactions

It is very crucial for you to take note where your cash is coming from and going, especially when you’re a small business owner. No surprise, bookkeeping helps you clearly and easily understand this.

Accurate records will come handy when handling or resolving discrepancies between employees, vendors and customers.

By staying on top of your books and keeping regular financial records, you can predict and anticipate your business goals more accurately and achieve growth.

 

2. Helps you budget accurately

Budgeting is an essential part of a business as it helps to determine the profit and loss of the company.

Poor financial records can slow the process for every business to grow, as it tends to demotivate you and eventually leads to over budget.

It won’t be easy to set your business growth goals when you don’t have accurate numbers or data to analyze meticulously.

No way that you’ll be able to hit the target you set when you don’t have a proper estimation and calculation of your cost and expenses.

3. Makes you well prepared with tax filing – keeps your audit ready

We always plan for future growth, so with bookkeeping, it makes your business easier to file a tax return.

With a proper record of your earnings by hiring a bookkeeper or using the WhyQ KiraKira app, don’t worry about scrambling for receipts and invoices because all your records are properly documented.

Accurate set of organized records yearly allows you to easily calculate how much tax you owe, not risking late payment and further penalties.

4. Improve your cash flow management

Bookkeeping is as important as the business itself because it also helps in improving your cash flow. Have you heard that ‘cash is king’ in business?

One of the key indicators of business success is having sufficient funds as it is critical for managing operational expenses and equipping for growth.

Bookkeeping provides all information on invoices such as vendor name, amount, date issued and due date. The routine recording of revenues helps you to keep track of when your customers and vendors invoices are paid (avoiding unnecessary fuss in the future).

 

5. Keep track of your business financial performance

Never underestimate the importance of business owners to be on top of their business’s financial health performance.

A monthly bookkeeping helps to track essential financial statements such as balance sheets, income statements and cash flow statements for an easy analysis of your profit and loss.

Why monthly tracking? This allows business to discover its potential growth and opportunities for them to gradually become more stable in the market.

So, do you think your business is well prepared with the proper bookkeeping professionals or have you downloaded our FREE Bookkeeping app, WhyQ KiraKira?

Need more ideas & insights to grow your business, read WhyQ blog now.