The Advantages and Disadvantages of Bookkeeping

Advantages and Disadvantages of Bookkeeping

The Advantages and Disadvantages of Bookkeeping

Bookkeeping ServiceProfessional bookkeeping services are crucial for monitoring cash flows, daily expenses, managing invoices and of course keeping your financial records true and up-to-date. Despite the many obvious advantages of bookkeeping, there are however some downsides that can impact the efficiency and profitability of your business.

Below will discuss both the advantages and disadvantages of bookkeeping to help you better understand the practice.

  1.   Meeting your Legal Obligation

One key advantage of bookkeeping is that it ensures you’re meeting your legal obligations in maintaining accurate and up-to-date financial reports for your business.  This includes recording and tracking revenue and expenditures in order to pay appropriate taxes annually. Failing to do this can land you in hot water against government penalties.

  1.   Creating Accountability and Transparency

Accountability and transparency are another benefit of bookkeeping. Bookkeeping allows you to search up transactions to confirm prices or payments previously made which creates accountability.

Accountability is also created among business partners who have authorisation to access company books to review cash flows. This gives business owners greater internal a control as recent bookkeeping software can alert business owners about any fraudulent activity such as for instance, an employee is channelling company assets elsewhere.

Bookkeeping allows for greater transparency as business owners can access their books to show potential investors who are interested in the business’ financial position.

  1.   Accurate Data

Bookkeeping also allows business owners to make informed decisions about their business as it provides “hard data”. This hard data is all about information about the progress or financial position of the business that is accurate and clear.

Is the business slowing down or running smoothly? Such questions can be answered with bookkeeping which can guide business decisions such as whether it is justifiable to close down a store location or hire more employees.

  1.   Time

Time can actually be a downside to bookkeeping. Even with automated computer software, collecting financial records, tracking errors and so on can take hours.  It also is time consuming to add new information, maintain the books and analyse the records which can hinder the pursuit of financial decisions.

  1.   Cost

Cost is also another disadvantage of bookkeeping. For smaller companies, employing an external bookkeeping service can be expensive as can buying the necessary bookkeeping software which need to be updated and replaced once newer versions come out.

Why Choose NumbersPro?

NumbersPro have been providing Melbourne with the best expert driven financial services you can get! We are fast and affordable and are dedicated to helping clients with all kinds of personal, business accounting and tax needs!

We believe the way you manage your finances today could have a major impact on your future.  So, why not leave all your financial management hassles to us! You can focus on maintaining your business, whilst our specialists will manage your finances professionally and to your full convenience.

Whether it is something simple or complex we will also offer a FREE financial review!

Contact us Today

Contact NumbersPro today and our expert team members will be happy to help you financially manage your life. You can call, email or fill out our super easy contact form and we will respond as soon as possible. You are also welcome to visit us personally.

NumbersPro has several offices located in Melbourne, Sydney and Darwin.

Office no: +61 3 9510 2120

Mobile no: +61 4 2327 4777

Email: info@numberspro.com.au

FAQs

What is bookkeeping?

Bookkeeping involves the process of recording, analysing, retrieving and interpreting your financial transactions of company, business, non-profit organisation, individual and so on. Bookkeeping is the largest part of the accounting process and it is usually managed by a bookkeeper who produces financial records that gives you accurate information about your financial activities. To find out more or to request one of our accounting services please call us at NumbersPro on +61 3 9510 2120.

Why do I need bookkeeping?

Bookkeeping is especially important if you own a business and want to abide by state laws. Specifically, Australian law states that a business’ bookkeeping must be accurate and up to date to ensure you are paying all your taxes and levies on time. If you fail to do so, you can face serious legal repercussions. It can also mean that you have lost control of the state of your business performance.

Bookkeeping is also important for personal  financial security and decision-making in the present and future.To ensure you understand and are abiding by your legislative requirements, get in touch with one of our qualified bookkeepers at NumbersPro today.Please call +61 3 9510 2120.

Why should I outsource bookkeeping?

Trying to keep your financial transactions recorded accurately and constantly updated can be demanding especially if you have a growing business. It can also be a difficult and onerous process to try and understand and abide by complicated tax laws. Therefore in order to avoid failing to satisfy your legal financial obligations, it is best to hire one of our qualified bookkeepers at NumbersPro. To find out more or to request one of our accounting services please call us on +61 3 9510 2120.

Can my accountant do my bookkeeping for me?

Indeed some accountants can do your bookkeeping but it is best to have it done by a certified bookkeeper from NumbersPro. Not only do we better understand the process but we are faster, more reliable and more affordable than standard accountants. To find out more or to request one of our accounting services please call us at NumbersPro on +61 3 9510 2120.

What financial services can you provide?

At NumbersPro we are fast and affordable and we offer a comprehensive range of services including accounting and tax, payroll, financial planning, loans and bookkeeping for all kinds of business owners, executives and individuals. You can focus on maintaining your business, whilst our specialists will manage your finances professionally and to your full convenience. To find out more or to request one of our accounting services please call us at NumbersPro on +61 3 9510 2120.

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