In this blog, Melanie Beech from The Salon Expert Accountant here discusses a topic that’s crucial for the success of your business: monthly bookkeeping.
You might be wondering, “Why is monthly bookkeeping so important, and what benefits does it offer?” Well, buckle up as we explore the answers to these questions and some easy tips on how to keep your bookkeeping up to date.
**Reason #1: Keeping Track of Income and Expenses**
As a business owner, it’s easy to overlook small expenses and purchases when they’re not recorded promptly. Doing your bookkeeping on a monthly basis ensures that you stay on top of these transactions, minimising the chances of losing invoices or forgetting vital details. Being able to track down lost invoices becomes significantly easier when they are recent, which is essential for claiming VAT back.
Additionally, when you accidentally pay for business expenses using your personal account, regular bookkeeping increases the likelihood of noticing and correcting the mistake promptly. This results in more accurate and reliable financial records.
**Reason #2: Accurate Accounts and VAT Returns**
Accuracy is paramount when it comes to your accounts and VAT returns. By keeping your bookkeeping up to date monthly, you can confidently report your business’s financial position. This accuracy prevents overpayment of taxes and VAT, saving you money and hassle.
Late submissions of VAT returns or year-end accounts can result in fines. With monthly bookkeeping, you can rest assured that you’ll meet deadlines and avoid unnecessary penalties.
**Reason #3: Improved Cash Flow Management**
Proper cash flow management is a game-changer for businesses. With monthly bookkeeping, you can analyse your income and expenses, allowing you to predict the amount you need to have in the bank for upcoming payments, including VAT and corporation tax.
Having a clear picture of your monthly expenses enables you to make better financial decisions, ensuring you have enough cash on hand to cover all essential outgoings. This is invaluable for maintaining a financially stable business.
**Reason #4: Monitoring Business Growth**
Monthly bookkeeping provides a snapshot of your business’s financial health. You can track your business’s growth, identify areas of success, and pinpoint potential improvements. Armed with this knowledge, you can make informed decisions regarding business expansion, marketing, and investments.
Regular reports allow you to see if your business is profitable, running at a loss, or just breaking even. This information is critical for setting realistic goals and developing strategies to achieve them.
**Reason #5: Reduced Stress and Overwhelm**
We all know that running a salon or clinic can be hectic. Regular bookkeeping can save you from hours of last-minute accounting panic and stress. By keeping up to date with your financial records, you’ll have peace of mind, knowing that everything is organized and accounted for.
If managing your bookkeeping feels overwhelming, fear not. Hiring a reliable bookkeeper can make a significant difference. They’ll ensure that your financial records are maintained accurately and up to date, allowing you to focus on what you do best – running your business. All of our bookkeeping clients have the peace of mind that their bookkeeping is being completed by a qualified professional. This saves time, stress and money.
**Conclusion**
Monthly bookkeeping is a must for salon and clinic owners. By staying on top of your financial records, you gain valuable insights into your business’s financial health, improve cash flow management, and make well-informed decisions for growth and expansion.
If bookkeeping is not your forte, don’t hesitate to contact us. Melanie Beech and the team at The Salon Expert Accountants are here to help you navigate the financial side of your business with ease. Reach out to them via Instagram, Facebook, or their website to learn more about how they can support your financial success.
With regular bookkeeping, you can achieve financial stability, growth, and most importantly, peace of mind, enabling you to enjoy your business and find more time for yourself and your loved ones.
