The link between business health and updated bookkeeping and accounting records

Taking business decisions based on facts and figures is critical for business growth. That is the most crucial reason why business owners and companies must ensure their bookkeeping and accounting records are always updated. In the absence of proper business records that express the financial health of companies, it is impossible to make the right decisions to take the business forward. Therefore, in the best interest of business, you must keep the accounting records updated which would ensure that the bookkeeping records are updated too.

Businesses have realised the importance of updated accounting records and to ensure that there is no slippage are availing Quickbooks Darcy Services Bookkeeping offered by certified bookkeepers. There are more benefits to maintaining updated accounts and bookkeeping records that have been discussed in this article.

Scale up revenue in gradual steps

Some businesses stay tied to existing customers for long and are unable to jack up revenues because they are unable to find better customers who could provide better returns. That happens because they do not have any data about the business that points to the customer contribution with respect to the product mix or the type of service. To make the revenue grow, it is necessary to analyse the sales figures by focusing on the more remunerative products and its customers and weeding out customers of products that give low returns. It means distinguishing between high-quality customers and the poor ones and then gradually replacing the low-quality customers with good ones to build up revenue.

In the above scenario, you need some metrics that help to identify not only high-quality customers but also the ones that drain your resources with minimal returns. To get insights about the business you need to look at the bookkeeping and accounting records which if not updated will lead to wrong decisions.

Do away with less remunerative products and services

All products and services are not the same in its ability to provide returns, and you should be able to identify underperforming products or services. It is impossible if you do not have proper bookkeeping records that capture all financial transactions. Regardless of the size of business whether it is a proprietary small business or a big corporation, this information is very much necessary. By analysing data based on current records you can quickly identify products or services that take too much of your time but provides a small return. By cutting underperforming products and services, a business can experience good growth and very quickly.

Tax filings

Paying taxes and filing returns on time is a responsibility that no business owners should take lightly. However, it happens that instead of doing such tasks regularly some business owners keep pushing it back until the last date comes near and it becomes too much stress to meet deadlines for tax payments and filing returns.

Keeping books updated and paying monthly taxes becomes easy when you have your accounting records updated so that there is no need to press the panic button at the last moment fearing missed deadlines.

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