By: jnawali
Bookkeeping Services
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Bookkeeping is one of the most preferred styles of maintaining personal or business-related finances. Let us have a look at the definition of Bookkeeping to understand this term better.
We often hear the term bookkeeping and believe it to be another synonym for accounting, but there are considerable differences between bookkeeping and accounting.
What is Bookkeeping?
Bookkeeping is the process of recording your company’s financial transactions into organized accounts every day, starting from your costs to your expenses. It includes recording invoices, deposits, income, payments, receipts, and other necessary transactions that have taken place. The accumulated data later generates reports to help business owners understand the small business’s financial situation. These reports come in handy while making critical decisions like preparing tax returns, VAT returns, financial accounts, etc.
Why Is Bookkeeping Important?
Helps You Prepare For Your Taxes
Filing your taxes is a long and painstaking process, but every business has to file it at the end of every tax year, no matter how small. With a proper bookkeeping system in place, recording your earnings and expenses becomes streamlined. No more scrambling for receipts and invoices because all your information and records will already be documented and ready for tax season.
Assists You To Create An Accurate Budget
Having a clear vision of your budget is vital for the financial success of your business. Bookkeeping allows you to assess your financial resources and gives you a clear vision of your income and expenses. Review the conditions of your financial resources, and you can create an effective budget akin to a financial roadmap for your business. A proper budget allows you to plan your future expenses and assess your growth. Accurate and up-to-date bookkeeping habits help us create an accurate budget.
Track Your Performance
Precise bookkeeping and maintenance of financial records permit you to analyze your business’s performance. You can also compare data and numbers against the budgets and analyze the resulting variances.
Help Your Business Stay Organized
The main motive of bookkeeping is maintaining records. When you have a proper bookkeeping team looking after your financial record and organizing it regularly, you can have easy access to all your financial data. This habit will come in handy when it is time to apply for loans, grants or even attract potential investors.
Forget about the last-minute stress of missing deadlines on your deals or making errors with regular bookkeeping. Also, maintaining daily records is much easier to manage than bi-yearly or yearly bookkeeping.
Improves Decision Making
Making decisions regarding your business can be daunting, yet bookkeeping allows you to provide accurate information, which lets you make strategic decisions that don’t hinder your business’s growth. Instead, it elevates stress from the business owner, giving them peace of mind.
Better Cash Flow and Credit Control
Bookkeeping is beneficial not only to maintain a record for the business owner but also helps to improve your cash flow. Starting from invoice information, vendor name, due and issue date and more. Bookkeeping gives you the data on which customers and vendors have paid their invoices and which ones are pending.
Provides Business Overview
You can have a perfect overview of your business with financial statements like; balance sheet, income statement and bank statement, that accurate bookkeeping has helped collate. With this data, you can focus on planning strategically and focusing on the growth of your business –from working on short-term and long-term goals to making critical decisions like products and stock management depending on demand.
Easier Investor Reporting
Whenever you need to expand and grow your business, you need investors to aid you. With accurate and regular bookkeeping, you can confidently prove your growth, net profits, margins, and more to new partners, investors, and even banks.
Why Choose Apex Accounting For Your Small Business Bookkeeping
If you are a small business struggling with your bookkeeping, Apex Accounting has the solution to all your worries. We at Apex Accounting are the most reliable bookkeeping and accounting service provider in Toronto. We help you keep your books accurate and up to date so that you can focus on growing your business. With our level of transparency and commitment, you will have a clear understanding of where your money is coming from and where it is being spent. We ensure you have correct accounting information for your business, from general journal entries to financial statements. To learn more about us, call us at (647) 979-7728 or mail us at info@apexaccounting.ca.