12 Apr Bookkeeping for startups and small businesses
You have started a business that you are proud of. You are spending a lot of your time
developing the business. You don’t want to be losing any of that valuable time wondering
whether your accounts are up to date. You want to be generating growth and profit and using
your time wisely.
Bookkeeping may not seem as urgent or valuable as finding customers and bringing in more
sales. However, that doesn’t mean that it is not foundational to the health of your business.
You can’t get a clear picture of your financial position and cash flow without proper
Bookkeeping is the process of recording day to day financial transactions. Good bookkeeping
is important for all businesses, whether large or small. It will help you to easily and smoothly
complete your tax and compliance requirements.
A good bookkeeping system will also make it easier for you to manage the business. You can
manage your cash flow and make more informed business decisions, aware of your financial
Businesses have a legal requirement to keep financial records for a minimum of 6 years.
Records to be kept include:
• Sales and purchase invoices
• Bank and credit card statements
• Payroll records
• Nominal ledger reports
• Stock reports
• Accounting books
It is far easier to maintain these records digitally. Keeping them digitally doesn’t merely
mean storing them on Google Drive or Dropbox. Cloud systems, like Xero and Hubdoc can
be used to maintain and manage all of your financial records on the cloud. The benefits of
using such systems is that you have access to your financial data on the go, wherever you are.
Can a small business owner do the bookkeeping themselves? Most certainly it’s possible, but
realistically, bookkeeping can be a time consuming and stressful chore, if you are not
professionally trained to do it.
Your time is valuable, if you would much rather use it productively, to focus your attention
on growing your business, it is better to get a professional, like our company, Smart Books to
handle your bookkeeping.
We will set you up on the best cloud systems to manage and keep track of your finances and
provide you with regular reports to allow you make more informed business decisions.
Act Strategically and make wise decisions to improve profitability.