At the end of each tax year, we make a promise to ourselves to get better organized for the new financial year ahead when it comes to record-keeping and business financials – but how many of us start as soon as the new business year does?
The intention is great, but the actual practice of jumping straight in doesn’t always play out due to so much else to do, right? Eventually, by the end of the year, you may find yourself once again having to take sizable time out of your working days to start assembling all of your records and catching up with your books.
Failing to keep accurate and updated financial records will end up seriously impacting your company. As a business owner in 2024, you need to start looking at the beginning of the year to ensure your financial records are continuously updated – and bookkeeping services may be the answer.
How is Bookkeeping Different From Accounting?
Some business owners may get confused when separating bookkeeping from accounting. Bookkeeping focuses on the recording and organizing of your financial data, while accounting is the interpretation and presentation of that data.
Bookkeeping involves carrying out tasks around reconciling bank statements to ensure accuracy, generating and sending invoices for payment, managing supplier payments, and preparing monthly reports on the company’s financial position. All of these areas are specialist areas for bookkeeping services in Manchester.
Keeping Bookkeeping Updated
There are several reasons to keep your bookkeeping updated despite it being a top priority for many day-to-day businesses. The main benefit comes in having a snapshot of your business finances whenever you need it most.
An accurate view of financial health is important to you and your wider stakeholders. If your books are outdated and inaccurate, so is your knowledge of your business’s financial standing. If your records are inaccurate on income, expenses, and all financial transactions throughout the year, you could be in line for a hefty tax penalty or potential tax audit by HMRC.
As a positive, regular updating of your bookkeeping helps you stay on top of your cash flow and identify any potential issues before they become extremely costly to your business. That includes tracking your invoices, payments, and other financial transactions to ensure your business has enough cash to meet your financial requirements.
By delegating your bookkeeping tasks to small business bookkeeping solutions like the team at Pebbles Bookkeeping, you can free up all that valuable business time and resources, allowing for more focus on core tasks of your duties to your business. Contact the team at Pebbles Bookkeeping today for more information and to start your new financial year more organized.