Beginning a new business requires oversight of multiple internal processes, but implementing good bookkeeping procedures is crucial for achieving long-term profitability. Quality accounting methods also help business owners make better and faster decisions. By using enterprise-level accounting software like Big Red Cloud, senior managers can also streamline auditing processes and transaction details.
1. Increase the likelihood of loan approvals.
Having the ability to provide instant financial statements can improve the company’s chances of securing a loan. Banks always want to review a wide variety of financial documents to determine if the company is a good candidate. Messy bookkeeping techniques send a message that the applicant is unorganised regarding their monetary transactions. Need we say more!
2. File income taxes easier.
The filing of income taxes will go much more smoothly with proper bookkeeping procedures in place, even in cases where the start-up hires an expert CPA. Using an appropriate online accounting software can expedite the process even further because digital files can be emailed instantly without the need for scanning manually transcribed documents.
3. Better bookkeeping means less risk of a Revenue audit.
The manual entering of data into spreadsheets leaves the company open to human error. A single mistake can lead to the companying paying too much or too little income tax. Proper recordkeeping can also substantially reduce the risks of an audit by the Office of the Revenue Commissioners.
4. Impress creditors.
Even in the best of circumstances, there will always be times when a creditor needs financial documentation to support their own internal accounting mishaps. Organisations that have instant access to this information tend to impress these vendors, who will then be far more likely to grant special favours should the need arise in the future.
5. Make better decisions based on profitability margins.
Quality reporting and accurate financial statements help senior staff members to determine the profitability of current or new products and services. When proper bookkeeping procedures are in place, financial documentation is always readily available to help make decisions regarding everything from price adjustments to marketing expenses.
6. Predict future trends more accurately.
Most new start-ups begin by launching a very limited amount of products and services, but they usually have several others waiting in the wings getting ready to promote when the time is right. With proper bookkeeping protocols, business owners can monitor spending trends of the customer base to predict more accurately which future products and services will attract the most sales.
Too many first-time business owners fail to see the significance of good bookkeeping strategies. Implementing the most accurate and easily manageable bookkeeping solution is critical to the overall success of your enterprise. At Big Red Cloud, we specialise in accounting software that is easily scalable to grow and expand along with your business.