Why real-time bookkeeping is your key to business growth

Why real-time bookkeeping is your key to business growth

We get it. You didn’t set up a business to spend your days crunching numbers, dealing with tax returns or panicking about getting all your paperwork to your tax accountant on time. Well, real-time bookkeeping means you don’t have to. Today’s online accounting software, means your financial accounting could always be up-to-date. But it’s not just about submitting your tax returns on time or knowing in advance how much tax you owe. It’s also about providing you with valuable information about your business’s health. After all, if you only do your books annually, how do you know if your prices are set too low, if your profit margins need adjusting or if your stock levels are wrong?

Key Benefits of Real-time Accounting Software

Spend more time on clients, and less on financial accounting. No more manual data entry. Doesn’t that sound good? Real-time bookkeeping reduces the time you spend on tedious, time-consuming tasks which means you can spend more time on your clients and business growth.

Identify what’s working and what’s not

You might think that you are doing well in a certain area, or that you are generating most of your profit from particular clients or products. But is this accurate?

You might think that you are doing well in a certain area, or that you are generating most of your profit from particular clients or products. But is this accurate?

Real-time bookkeeping will give you a day-to-day report of sales revenue by customer and sector along with margins and associated costs. It allows you to focus on those pieces of work which make the highest profits.

And the great thing about cloud-based systems is that you can do this analysis yourself or use accountancy services to take the headache away.

Plan your future business growth

Scaling up your business can be hard to do, so it’s crucial you spend time analysing your business’s financial health. By keeping a real-time track of every single transaction, you will have an accurate picture of your profitability and an understanding of how and why this changes over time. This in turn will help you make well-informed decisions to improve your profits and manage your cashflow.

And if you’re looking for finance from a bank or investors, this real-time information will work in your favour.

Reduce the cost of your accountancy services

Yes, really! Real-time reports allow errors to be caught early, which reduces the workload of your tax accountant.

So, what accounting software should you use?

It doesn’t really matter what software you use, as long as you use something. The following are 3rd party options, which you have to pay for:
• Xero
• KashFlow Manager
• FreeAgent

We also offer a free cloud-based product as part of our accountancy services package, so if you are looking for accountants in Aylesbury, please get in touch.

A final piece of advice

If you do one thing for your business, stop thinking about financial accounting as a necessary evil and start thinking about it as ‘business information’.
Still not sure where to start? Then give us a call. We are more than happy to help, so if you are looking for accountants in Aylesbury, please get in touch.

Read more blog posts here.