How bookkeeping can empower you in your business

Simply put, the Revenue Commissioners! That’s the first thing that most business owners think of.  While it is true that you need accurate records to meet your requirements of filing a tax return, you will only be able to do this if you have a bookkeeping system in place that allows you to easily pull reports and show how much profit you have made.

You want the ability to show where your purchases were made and for what reason. You want to keep up with your bookkeeping so that you feel confident when filing your taxes and if your accountant or the Revenue Commissioners ever have questions you can open up your records and direct them to the information that they are looking for. 

Throwing something together at the end of the year is not a good idea. Any gaps in your records will raise more questions than needed and I can promise it will cause more anxiety and stress on your part.

But this is not about scaring you into good bookkeeping practices!

This is about showing you the other perspective. How having a solid financial foundation built on excellent bookkeeping resources, tools and practices can empower you in your business.  It can help guide you in knowing exactly where your business stands financially.

Your financial information should give you easy access to look at your actual financial position, compare it to your previous year and to your budget to see if you are on track with your financial goals.

By keeping up with your bookkeeping, you can take the guess work out of your business cashflow. I am often asked the same questions by business owners: how much should I set aside for taxes, how much should I have as a buffer in my bank account, how do I know what to pay myself? Without any bookkeeping routine, you won’t have access to the financial information you need to answer these questions.

Having up to date records allows you to track your goals, while also planning for future growth. It makes it easier for you to tackle those big decisions such as purchasing new equipment, investing in that course, hiring new staff and paying yourself a bonus.

There are lots of reasons to create a bookkeeping routine and get your records up to date.

If you are serious about growing your business and creating a positive impact in your community, this is something you cannot ignore. Financial foundations are the essential structure your business needs to grow.

Make sure to check out our free downloadable DIY bookkeeping checklist on our website to help you get your routine started!