According to CPA Australia, 32% of businesses fail due to financial mismanagement and out of failed businesses 12% have poor or no records/books. If you do not have the expertise, please do not hesitate to pay at least a bookkeeper to be involved in your business. The importance of bookkeeping cannot be stressed enough.
Six reasons for good bookkeeping:
- Better financial analysis and management.
- Tax returns made easier.
- Asking for funding/ loans from a bank requires financial statements.
- Well-kept books makes business planning so much easier.
- Not separating personal and business funds causes a lot many businesses to be penalised by the ATO or even fail.
- Record-keeping required by law for 5 years after the transaction occurs or they are prepared (as per the ATO ).
In every business – small, medium or large – having a clear, comprehensible and transparent record keeping systems is what makes a difference nowadays that could mean your business’ survival.
Bookkeeping accounting is an essential factor that can either make or break your business, whether it’s a small, medium or big business.