When it comes to keeping business and accounting records, most companies would admit to the need for improvements and doing things better. Is it important to keep good records or is it just a waste of time and effort? Here are some reasons why it’s imperative that your business practices excellent record keeping:
You know your business like the back of your hand, but when it comes to seeking information from the past, its reliability depends on how well you have kept and recorded the data. Nobody can be expected to pull figures from their head. Without access to good records from past transactions, how can you make solid decisions going forward?
- Better organisation when dealing with suppliers and clients
When you can access your information quickly and efficiently, it makes it easier to produce quotes, raise invoices and draw up estimates. By providing this information accurately and speedily can be the difference between gaining a contract and losing one. You’ll also be able to find out how much you owe suppliers before they invoice you, which can help with financial forecasting. Producing invoices, quotations and estimates promptly is vital.
- Create better management accounts
Want to see immediately why you might be losing or making money? With better organised management accounts, you can compare one month to another, or one year to another much quicker. No more speculation but solid comparable data to show you what’s going on. For help with all of these factors, consider Accountants Cheltenham like https://www.randall-payne.co.uk/
- Find information immediately
If a client disputes an invoice, it’s important to be able to put your hand straight on the information you need regarding the order and goods or services supplied.
- Advanced preparation for tax payments
Nobody can avoid the tax man and it makes great business sense to set aside the money needed to make your tax payments when you have it available. It pays to have arrangements in place with HMRC and to know you’re on top of tax planning. Good record keeping practices also make light work of tax returns and keeps you on top of any entitlements or relief you could claim.
By knowing when to make payments to HMRC, you’ll also avoid interest and penalties. Deadlines won’t loom over you like they did before, as you’ll have everything filed and in ship shape condition.
- Helps to keep accountant fees down and save time
Of course, your accountant can help you with all of the above but if your records are terribly disorganised, it will take them longer and ultimately cost you more.
- Stay compliant
Above all, getting to grips with your record keeping keeps you on the good side of the law when it comes to the rules of assessment. When you know you are complying with all of HMRC’s requirements, you can sleep easy and enjoy the above benefits as well.