THE GOLDEN RULES OF BOOKKEEPING
Second to managing customer accounts and attracting new sales, bookkeeping is one of the most important functions in any business. If you’re diligent and have proper processes in place, you’ll have access to timely information that shows the true performance of your company. If you’re ambivalent in any way, though, your business could wind up in very serious trouble without you even knowing it.
A lot of companies, particularly small businesses that are just getting off the ground, tend to focus on getting as many sales as possible– it’s a natural way to start. After all, without customers a company might as well not exist at all. However, if source documentation when filing accounts for the company is not easily available, all of the effort put in on the sales side may prove worthless if the bookkeeping processes are not up to scratch.
When keeping accounts, the first rule is that it’s all about routine. If a company does not have a full-time accountant or financial controller then it is almost always up to the owner-manager himself or herself to look after one of the most important functions of the company. In some cases the responsibility will fall on a member of the owner’s family. Nevertheless, it is vital that the person in charge knows the financial state of his or her business at all times. Having a complete understanding of what is required to maintain proper accounts on a weekly or monthly basis will add an appreciation to the role of whoever it is assigned to and will also place a greater level of importance on it in the overall running of the business.
At DCA Accountants and Business Advisors, we take our clients through the key steps in bookkeeping from the outset. We explain in simple, jargon-free terms everything that they have to do to keep their accounts and books in order – by following the simple rules of consistency, completeness and communication, you’ll find that any information you need at any stage regarding your accounts will be readily at hand.
However, we’re also very aware that accounts management and daily bookkeeping are not necessarily a skill set that everyone has, which is why our clients find our bookkeeping service so valuable to their businesses. We can take care of all invoicing as well as PAYE payments and/or VAT returns. If there are pieces of information missing such as credit notes or invoices, our experienced bookkeeping department will follow up with the company’s clients to ensure everything is in order and that the information is accurate.
The key point, however, is that proper bookkeeping procedures are essential when running any business. Get it right and you’ll see very quickly just how much of an asset it can be to your business; get it wrong and the future of the business could be very bleak indeed.
DCA Accountants & Business Advisors
For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie