One of the best lessons a parent could teach their children is learning how to manage their savings and expenses. Through this, they will grow up with the proper mindset that understands how to analyse, interpret, and limit their spending so that they’ll have the needed funds for emergencies and enhanced capability for building towards a more secure financial future.
In business, this idea is similar to what a bookkeeper does for a company. So, what is bookkeeping and why shouldn’t business owners and managers ignore it?
A bookkeeper is someone who creates records based on daily financial transactions, giving a company accurate information about their financial activities. Additionally, bookkeeping may also involve the creation of invoices, posting debits and credits, maintaining and managing general ledgers, and completing payroll requirements. As such, it’s clear that it is an essential part of the overall operation of a business.
Due to the many responsibilities bookkeepers have and the records they possess, they are seen as valuable assets in business. To give you a clearer idea of why bookkeeping is essential, let’s proceed to discussing the benefits it brings.
Keeps You in Focus
Managing and keeping track of daily financial transactions can be tedious work. For business owners and managers, there’s just not enough time to do all these AND manage the other areas of your business. A bookkeeper can handle this for you, managing the numbers and recording the daily financial transactions for your business so you can focus on other important areas such as growing your business.
A Clearer View of Your Financial Situation
As mentioned earlier, bookkeepers are responsible for recording the company’s daily financial transactions. As such, they have the details and needed information to keep you up-to-date in terms of your company’s overall financial situation. This is an important aspect because knowing where your business is at financially will affect decision-making and your plans moving forward.
The bookkeeper will give you access to any financial information you might need such as payroll estimation, income information, and outstanding bills, among others, to make sure you’re always informed.
Better Business Strategies
Due to their duties and the information they are privy to, bookkeepers can also help you formulate better financial strategies and decisions. Bookkeeping data can help you devise viable plans to avoid cash-flow problems, identify money-generating opportunities, and make a decision in terms of increasing or decreasing company spending. Data is the lifeblood of today’s businesses and, as such, bookkeeping plays an important role in making the right financial decisions.
Reduced Risk of Fraud
No matter the industry, financial fraud is a reality companies both big and small may have to contend with one way or another. What makes things more difficult is that it can come from internal (e.g. dishonest employees, misallocated funds) and external (e.g. dishonest partners or third-parties and customers) sources.
Through bookkeeping, your business will be able to better monitor company cashflow, income, and expenses. Your bookkeeper will be able to analyse daily financial transactions and spot suspicious and questionable dealings or figures and escalate them to you as needed. Your finance team can then crossreference and review these suspicious transactions to determine if they are indeed legitimate concerns and recommend actions to be taken.
In other words, bookkeeping can alert you on potentially fraudulent activities before any huge losses occur. Having an honest and competent bookkeeper and effective bookkeeping system can also be a deterrent against would-be fraudsters within your company.
How We Can Help
While bookkeeping is indeed crucial to the success of a business, it wouldn’t be as effective without the right personnel. Here is where we at Forward BPO can help.
We are an outsourcing and call centre company that caters to international clients from the US, AU, UK, and NZ. Forward BPO offers a wide range of outsourcing services including after-hours call answering, web development and web design, bookkeeping, live chat support, data management, telemarketing, and more—all of which are designed to take your business where you want it to be. The best part? With these services we offer the right talent so you can experience the full business benefits of what we offer.
Want to know more about how we can help your business move forward? Please don’t hesitate to contact us.