Every business incurs expenses as part of its daily operations and keeping an accurate record of every single one of them is essential. Tracking all expenditures ensures that your financial statements present an accurate picture of your company’s real income and expenses.
Tracking expenses may sound easy, but the practical steps involved can be time consuming and require extreme attention to detail. Many new business owners take pride in doing most tasks themselves, including the bookkeeping! But, unless you are an accountant that’s not why you decided to open the business and crunching the numbers probably not your area of expertise.
Rather than collecting receipts and inputting them manually or hiring a full-time bookkeeper, many of our clients have opted to sign up for our outsourced bookkeeping and accounting service that takes care of the time-consuming process of expense tracking while they focus on growing their businesses.
Let’s take a look at the process involved in financial recordkeeping and why it makes good business sense to outsource this function.
The expense tracking process explained
Every month, the money your business pays out needs to be accounted for. In order to do this effectively you will require the following:
- A business bank account
- Accounting software
- A bookkeeper – or loads of spare time to enter every expense manually yourself
- A bookkeeping policy and routine that ensures your expenses are recorded on a regular basis so that your financial statements are always up to date.
Some companies have all of the above, yet their books are routinely out of date – and this can cause major problems when dealing with banks and other lending institutions that may ask to see your financials.
Your books are equally important when submitting your annual tax returns which is a legal requirement for every registered company.
By outsourcing your bookkeeping requirements you’ll be able to focus on business strategy, product development, and your key clients while we take care of the small, time-consuming details like capturing the receipts and invoices that your business pays on a regular basis.
Outsource your bookkeeping and focus on the big picture
A carefully recorded set of books provides absolutely accurate financial information about your business and comes with a raft of benefits:
- The ability to pinpoint company expenses and reduce them to boost your profitability
- Identification of wasteful expenditure, fraud, and irregular and unauthorised payments carried out without your permission
- Faster turnaround times for loans and business financing since your financial statements will be accurate, up-to-date, and ready to submit at short notice
- A stress-free tax season thanks to your company’s books being accurate and ready to be used as part of the tax preparation process.