The Importance of Accurate Bookkeeping

Good quality bookkeeping is essential for helping you maintain accurate financial records and to manage, plan and grow your business.  Besides the fact that by law you are required to keep proper books and records, it helps you to run your business effectively by assisting cash flow, management accounts and the budgetary process.

Poor accounting can cause major disruption to your business and inevitably results in your business losing money.  Losses happen as a result of poor bookkeeping due to many factors such as poor debtor collection, imposition of Revenue fines and penalties, accruing costs that you were not aware of, misappropriation of company assets, bad terms with service providers, the list is endless.

In order to maintain proper books of account, you need to start at the basics. 

Record sales on a timely basis

If you invoice your customers, raise the invoice and record it as soon as possible.  If your business is a cash business, then reconcile and record your receipts to your register on a daily basis.

Watch your bank accounts

Keep an eye on your bank account and ensure that you know what is coming out of your account and who money is coming in from.

Record all of your purchase invoices

This is vital for so many reasons such as managing your costs, claiming VAT inputs and having tight control on what you are paying out to your suppliers and service providers.

Produce and examine payroll reports

Record and reconcile Revenue and other payroll liabilities on a timely basis to get a true reflection of your company performance and liabilities in real time.

To assist you there in the maintenance of your books of account there are many automation techniques available to you that reduces the mundane and time-consuming chore of bookkeeping. 

Did you know that:

  • You can download your bank transactions and import them directly into an accounts package without having to enter them manually.
  • You can take a snapshot of a receipt on your phone; it extracts all the necessary information for it to be imported into your accounts system and stores it on the cloud.

These are some of the simple things that Consultus can help you in managing your accounts in an effective manner so that you can get on with what’s important.  Running a successful business.   

Please contact Paul Keogh (pkeogh@consult.ie) or your usual Consultus contact if you would like to discuss this further.