By: jnawali
Bookkeeping Services
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Bookkeeping is the systematic way to record all your financial transactions so that the company can get any time to review, compare, and forecast for the future. When the business grows, you need all financial information daily to run the business and be competitive in the market. So always, the back-office bookkeeping and accounting department plays a pivotal role in any business’s success.
If the back-office accounting department is not functioning well means you cannot run a successful business. Hence, anyone who is running a successful business knows the importance of bookkeeping/accounting.
1. Knowing the correct number of the business
The cost of running a business is always essential to be the leader in the market. The cost of goods sold, operating expenses, administrative expenses, marketing expenses and payroll cost, contribution margin, sales or income details are the significant numbers that have to be known to a business owner or the person who runs the business. If your bookkeeping or accounting team is not working efficiently, you will not know your business’s accurate information, which means you do not know your financial health. With inaccurate information, it is not possible to run a successful business.
2. Financial forecast and business strategies
As a CEO, you always dream of taking your business to the top to achieve high growth and success in business, you have to make a business plan and forecast. If your bookkeeping and accounting department is not functioning well, you will not get the proper information to complete your goal, or with inaccurate numbers, you cannot be successful.
3. Internal fraud
Once the accounting department is not functioning well, there is always a chance of fraud; no one can control these types of fraud without a proper system and checks and balances. You must design the system with appropriate access to the system and check and balances. You cannot avoid it if each employee has the same level of power and there is no control system, you are gone show.
4. Paying extra cost
If the accounting department is not functioning well means no one is checking the documents properly. There are so many areas these people can save money for the company like bank charge, saving interest fine in invoices, on-time payment benefit, the wrong rate on products, a mistake in cost of goods sold.
5. Mistakes in the documents
When the accounting is not working systematically, invoices could be wrong, wrong rates, qty, low or high margin, wrong cost of goods sold. In this situation, your relationship with the customer could be worst, and you might lose them.
6. Cash flow problem
When your bookkeeping has problem means, you would undoubtedly face cash flow challenges. When the accounting department does not collect accounts receivable on time, not invoicing on time, not paying to suppliers on time will impact your cash flow. If the cheques bounced due to cash flow issues, it would affect your credibility.
7. Tax Deadline
The bookkeeping and accounting department is not working in the way it is supposed to be; then, you will never meet your tax deadline. This issue could be a big problem for the corporation; not keeping track of tax information appropriately and not paying the tax due on time and filing delay will create an extra burden on the company’s cash flow.
Stay Focused on What Matters Most
We are helping small businesses to get their business goal by providing bookkeeping and accounting services, year-end services, and controllership services. If you are looking for corporate year-end services and bookkeeping and accounting services for your small business, please contact us at info@apexaccounting.ca. Our team at Apex Accounting is constantly looking for ways to improve the profitability of your business at a low cost. If you want to know about our service, please give us a call at 647 979 7728 or email us at info@apexaccounting.ca. We are known as reliable small business bookkeepers of Toronto.