How Bookkeeping can save business from failure

According to ACCA, the world’s largest organization of Accountants, survival rates of small business in the first 5 years increases by 70% when they are connected to an accountant or bookkeeper. In this article, we will briefly explain what is bookkeeping, why is it important for small business survival, how it can save business from failure, what the practical problems in it and how automated bookkeeping a way forward.

What is bookkeeping:

Recording sales, purchases and expenses of business is normally referred to as Bookkeeping. This business data once entered, is used for the preparation of reports for statutory reporting as well as business analysis. So accurate bookkeeping is not just required, if done right, it can create a great information source for business management.

Importance of Bookkeeping:

Proper bookkeeping is vital for business success. Put simply, if you don’t know how much money is coming in, and how much you are spending, then there’s will always be surprises waiting for you. Many small business owners end up in a large amount of debt because they are not on the top of their spending- and by the time they realize, the only solution is to take out a loan to buy themselves some more time. On the other hand, if you are always aware of your company’s financial situation, then you will be able to make the right choices and help your business to grow and thrive. On the other hand, true and fair financial books are needed for tax and compliance purposes as well.

What are the problems in Bookkeeping:

Let’s face it- no one likes bookkeeping. The prospect of spending countless hours filling out numbers in spreadsheets fills most entrepreneurs and startup owners with dread, especially if they are just starting out in business. If you don’t know exactly what you are doing, as bookkeeping needs little subject knowledge, then the process can take even longer, as you have to learn the hard way all the ins and outs of small business bookkeeping. Make a mistake early on in the process, and you could find that by the end, the figures just don’t add up- meaning you’ll then have to go right back to the beginning again.

What is Automated Bookkeeping:

Luckily, the days of small business owners slaving over spreadsheets is now a thing of the past, thanks to automated bookkeeping. The rise of modern technology has offered enormous benefits to business owners, and that includes keeping on top of their accounts. In the early days, computers merely offered businesses a way of storing their records electronically. Now, though, automated bookkeeping software makes the whole process so much simpler, that you just need to snap/scan the bills/receipts/invoices and bank statements, and the rest is done automatically.

Once snapped/scanned, the automated bookkeeping software will take that data and convert it into easy-to-understand numbers, charts, graphs, and analytics. There’s no need to even type anything in! Using the in-built scanning software, the program can read any typed or handwritten text and pulls all the relevant information. Not only is the data converted into an electronic record, but the original invoice scans are also stored so that you can access them whenever you need to.

How to start with Automated Bookkeeping:

Cloud technology has made automated bookkeeping accessible to all, regardless of your budget. Before, companies would need to invest in expensive IT hardware in order to access such cutting-edge technology. Now, though, more and more businesses are adopting cloud technology, whereby they pay a fee to access software which is run remotely. The vendor handles all the hardware provision and maintenance, making cloud bookkeeping an extremely cost-effective approach that’s simply perfect for businesses large and small alike. Everyone can access this powerful automated bookkeeping software, which is set to revolutionize the way that we all do business.

All you need to do to start automated bookkeeping for your business is to sign up at Receipt Bot and upload the scanned/snapped documents.

Conclusion:

So, if you’re ready to make the switch from tedious manual bookkeeping to an innovative, intuitive automated approach, then it’s time to try out Receipt Bot today. All the information that you need is made available in one handy interface, so you will always be able to keep track of just how your business is doing financially. What’s more, by making it so simple to input receipts and invoices, there’s less risk of missing out any important information. In short, automated bookkeeping tool, Receipt Bot, is a powerful tool that can benefit any business.