FINANCE CORNER

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Tips and tricks from your local business and wealth advisors, Collins & Co of Footscray

For some business owners, bookkeeping is an annoying and frustrating chore that takes up a lot of time and is easy to put off until tomorrow.  However, avoiding your bookkeeping is dangerous.  Not knowing your company’s financial situation can result in a series of missteps that could ultimately cost you your business. Here are three benefits of keeping up with your bookkeeping up to date.

1 – You will make better decisions

You can only make informed decisions about your business when you have a full picture of your current financial situation, including how much money is in your accounts, what your cash flow forecast predicts, and how much money you owe. Without that information, it is much more difficult to know when you can afford to spend money or when you need to hold back. Maintaining your books ensures you have your company’s full financial picture available to you at any time so you can make smart decisions.

2 – Avoid financial mistakes

Your employees, contractors, and lenders all rely on you to make your payments on time. 

Not keeping track of your financial books can result in expensive errors being made, including benefits missed, bills not paid on time, or over or under payments. Moreover, financial mistakes can lead to a lack of trust and can erode these relationships quickly.

3 – You will save money

Not keeping track of your books can result in lost money that your business desperately needs. For example, you won’t know which of your customers aren’t paying you on time, which means you can’t follow up with them.

Or you could be paying too much in expenses and you’ll have no idea that money is being wasted. These inactions can affect your overall financial position.

Final thoughts:

Bookkeeping is an important task for any entrepreneur.

If you find yourself putting off bookkeeping or dread doing it, it is a good idea to investigate hiring an accountant or bookkeeper. They can save you valuable time and money in the long run. Bookkeeping is too important to the future of your business.

If you need to get your books in order without adding more work to your plate or need advice on bookkeeping software, contact us today at partner@collinsco.com.au

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