When we talk about the bookkeeping blindfold, we are talking about those periods where you are not keeping your bookkeeping system updated and have no clear indication of where your business is thriving or suffering financially.
It is something that many business owners put on the backburner and start to run blind, allowing their business to lose focus for growth.
Outsourced bookkeeping services can help you take off the business blindfold and provide the answers to your business’s financial state. Without a firm grasp of your current income and expense figures, you cannot effectively grow your business. Here are some areas a bookkeeper can help you to see clearly.
Income and Expenses
You would be amazed at the number of clients a bookkeeper has that have little to no idea where their business sits without the guidance of their bookkeeper.
Many business owners choose to run blind and engage their bookkeeper only once a year, usually towards the end of the business year, to help with updating their books and pulling all of their information together. By not knowing the business’s current financial state, how can you be expected to make good, positive financial business decisions?
Cash Flow and Accounts Receivable
When you have a new business, cash flow is one of the most important life blood to it.
One of the biggest and most common problems for these types of businesses is that they break the bank by selling their product with very limited resources. The problem within that always tends to be within accounts receivable. Staying on top of your business invoicing and accounts receivable is key to boosting your cash flow and keeping your business running at a healthy level.
One of the biggest benefits your business has with an up-to-date bookkeeping system is the ability to put some financial forecasting in place – all thanks to updated income and expense figures and accounts receivable kept in line.
Without accurate books, forecasting is next to impossible to achieve. To have those books in an accurate state, you have to perform monthly account reconciliations. Forecasting is a must-have for businesses operating today, yet many businesses do not take advantage because they choose to fall so far behind and not have professional bookkeeping services in Manchester to handle their financials.
There is a lot of valuable information that a bookkeeper provides for your business, and if you do not have a bookkeeper in place, you can call the team at Pebbles Bookkeeping today to get yourself on the right track moving forward.