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Small Businesses

September 21, 2022

Top 5 Ways Bookkeeping Could Save your Business: Expert Advice

BY: IPINMI AKINKUGBE

What is Bookkeeping

Bookkeeping is one of the organisational tasks of a business, it involves the recording of finances and financial transactions. It can be a great way for small businesses to manager how far their money goes and monitors businesses performance. If you want to steer clear finance issues in the future, bookkeeping is not something to avoid.  

Here are five ways bookkeeping could save your business:

5 ways bookkeeping could save your business

Accurate Budgeting  

Bookkeeping is vital to recording and monitoring the performance of your business but it also makes it easier to create realistic budgets. With your income and expenses properly organised, it is easy to go back and review all financial resources and costs.  

Budgeting helps you create a business roadmap. With a proper budget in place, you can plan your business expenses which helps with business growth. However, with disorganised finances planning and growth seems like an impossible task.  

Maintain Organised records

Running a business is hard enough, imagine adding the burden of disorganised and complicated finances. It will only make life harder. Having a dedicated account or investing in a bookkeeping system ensures you are organised and remain on top of your books making sure you do not miss important deadlines which not only relieves your stress but it saves you time in the long run.  

Maintaining organised records also allows you set business goals and see growth at the speed you want.  

Analysis of Business Performance

Business performance analysis inspects various aspects of your business and provides evaluation of its overall performance. Effective bookkeeping can provide an accurate analysis and outlook of the business, this saves time when trying to assess business needs. If finances are disorganised then it will be hard to assess areas where the company is doing well or needs to improve.  

Effectively Manage Cash Flows

How will you know how much you are owning your suppliers are how much debtors are owning if you do not keep extensive records? With bookkeeping, you are able to effectively manage cash flow and have a clear image of how much disposable income you have, where money is coming from, where cash is being spent and how it is being spent. Routine business decisions become an easier and smoother process.

                                                                        Good  Read: 5 reasons to use a Digital Wallet

You learn in the process

Bookkeeping can seem intimidating at first especially if you are just starting out, but using digital bookkeeping offers you plenty of chances to learn along the way and fill in some knowledge gaps. It can be hand – on with an app, with tutorials or free workshops to guide you.

Bookkeeping can help you make smarter business decisions as it helps you view your business from different perspectives and be more thoughtful when it comes to finances.

 

Why you should use Sabi for your Digital Bookkeeping

Within the Sabi app is one of the most effective bookkeeping tools for your business – Store. It allows you manage your day – to – day activities, customers and inventory both online and offline.  

  • Customer management is made easy by the sales recording section that allows you record your daily transactions and create sales invoices.  

  • You can easily monitor your business performance with the reports function and generate detailed sales reports on your business growth.  

  • You can manage your inventory and ensure you are always satisfying the needs of your customers.  

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