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Bookkeeping – the Benefits for SMEs

Last week we gave some advice for SMEs on the best ways of maintaining a steady cash flow which an essential consideration for small businesses.  The first tip was to keep on top of your bookkeeping using either an accounting system of the services of an accountant who specialises in SMEs.  With so many small businesses being crippled by customers owing money, it really does seem unfair that your business can fold through no apparent fault of your own.  Today we’re going to take a look at the advantages for small businesses of using an accounting or bookkeeping service.

Whatever type of business you’re in, you need to find a way to manage your books effectively.  Whether you do them yourself, have in in-house accountant (which is beyond the budget of most SMEs) or outsource your bookkeeping activities, keeping your books in order can mean the difference between success and failure when it comes to staying in business.

One of the most important advantages of using an accounting service is that it will help you with taxes – often an area that business owners find confusing.  A good accounting service will review your previous year’s tax filings and help you to plan for the future.  By planning taxes in advance in this way, it’s often possible to lower your overall tax liability and an accountant will come up with ways in which you can save on taxes.

As a business owner, hiring an accountant or bookkeeping service is a great way of outsourcing specialised skills that you don’t have time to do.  This means that you will have more time to focus on what you do best – growing your business.  The time you save by hiring a bookkeeping service will give you more time to find new customers and provide a better customer experience which leads to repeat customers, the holy grail of all businesses. 

Using a professional bookkeeping service means that your company’s bookkeeping is done by an expert with experience in this field.  Your bookkeeper can offer valuable advice on the profit and loss of your company to help you raise profits enough to consider expanding your business if that’s what you want.  Better profits can also mean that you can choose to work fewer hours if that suits you better – this could mean more time to spend with you family, an important issue for small business owners who often find that they spend so much time running their business that it’s difficult to find a work life balance.

 

When it comes to dealing with clients or customers who have not paid, an experienced bookkeeping provider can advise you on the best way of approaching the customer in order to secure payment.  When all else fails and the customer still owes money to your company, your accountant of bookkeeping service can advise you on when and how to engage the services of a professional debt collection agency.