When you’re running a business, it’s easy to think of your accounts as something that simply needs to be completed and submitted on time.
But your financial records can do much more than meet a deadline.
They can help you understand how your business is performing, identify problems early and give you confidence when making decisions.
Getting the accounts done is only part of the job
Having your accounts prepared is important, but it is worth looking beyond the finished accounts and asking whether the underlying records are accurate.
For example:
- Are your bank accounts regularly reconciled?
- Are income and expenses recorded correctly?
- Are outstanding invoices being monitored?
- Do your balances make sense?
- Are unusual movements being investigated?
- Do your figures give you a realistic picture of how your business is performing?
These may sound like simple questions, but accurate bookkeeping provides the foundation for reliable financial information.
Do you understand what your numbers are telling you?
You don’t need to be an accountant to understand the important financial information in your business.
Your bookkeeping should help you see things such as:
How much money is coming in?
What are your main costs?
Are your customers paying on time?
Is the business making a profit?
Are there changes in your figures that need investigating?
When your records are accurate and up to date, these questions become much easier to answer.
What are you actually paying for?
If you use an accountant or bookkeeper, it can be tempting to compare your annual fee with what another business owner says they pay.
But comparing the price alone doesn’t necessarily tell you whether you’re receiving good value.
Different businesses need different levels of support.
One business might only need year-end accounts and a tax return. Another might need regular bookkeeping, VAT returns, payroll, management information and someone available to answer questions throughout the year.
A more useful question might be:
“Do I understand what I’m paying for, and does the service I receive meet the needs of my business?”
Accuracy matters
As someone who has worked both in accountancy practice and as a Finance Manager, I know how important it is to have confidence in the figures.
Financial records shouldn’t simply be produced because a deadline is approaching.
They should provide a reliable picture of what is happening in your business.
Taking the time to reconcile accounts, investigate discrepancies and make sure transactions have been recorded correctly can make a significant difference to the quality of the information available to you.
When did you last review your bookkeeping?
You don’t necessarily need to change your accountant or bookkeeper.
You may simply need to take a step back and ask a few questions:
Do I know what services I’m receiving?
Are my records up to date?
Do I understand my figures?
Do I have confidence in the information I’m using to make decisions?
If the answer to those questions is yes, that’s a positive sign.
If you’re not sure, it may be worth having a conversation about your current bookkeeping and financial support.
At Mays Accounting Services, we believe that good bookkeeping is about more than recording transactions.
It’s about giving business owners accurate records, clear information and confidence in their numbers.
If you’d like to discuss your bookkeeping requirements, Mays Accounting Services provides practical bookkeeping support for small businesses and sole traders across Redditch, Birmingham and surrounding areas.
Mays Accounting Services
07300 195409
www.maysaccountingservices.co.uk
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