Failure to Keep Good Financial Records is a Costly Mistake.
The Importance of Keeping Good Financial Records.
A successful business relies, not only on solid cash flow, but also on sound record keeping practices.
Without up-to-date records it is impossible to determine the financial condition or profitability of your business.
And you may not be aware, but;
1. Failing to maintain proper records is, in many cases, illegal and can lead to personal prosecution.
2. Failing to maintain proper records is recognised as one of the main causes of business failure in the Ireland.
Running your business without good financial information is never a good idea. You may think that you have enough experience to be able to gauge these things in your head but at some point you will get it wrong. Without meaningful records of what you’ve actually done and, more importantly, what’s coming up, you may be facing unexpected trouble and certain costly consequences.
All business owners should recognise the importance of impeccable record maintenance and if not familiar with record keeping requirements, don’t hesitate to seek professional guidance. “I don’t have the time” and “I don’t know how” are excuses given when in reality, you are saying “I don’t think it’s that important and I can’t be bothered to sort it out”. When you consider that the alternative is prosecution or business failure then there are NO excuses.
It’s all well and good having an accounting system in place but if it’s not kept properly or up-to-date then you still can’t get hold of accurate information on your business as quickly as you need to. If you don’t keep accurate up-to-date accounting records then:
1. You have no reliable information to assist you with your everyday business decisions.
2. You will be unable to quickly and easily identify all your business assets, liabilities, income and expenses – all the financial data that helps you operate more efficiently, thus increasing your business growth and profitability.
3. You can not prepare current financial statements, such as Profit and Loss or Cash-Flow Projection, or supply information to your bank, mortgage lender, etc., and therefore can’t get financial help when you need it.
4. You will pay unnecessary fees and consequences if you fail to keep good records from the start, and sloppy records reflect badly on your business.
5. Things will get very stressful come tax time. Poor records could cause you to underpay or overpay your taxes. In addition, good records are critical for a Revenue audit.
Read You Think You’re Tax Compliant but…
What’s more is, while business record keeping is necessary for tax or audit purposes, good record keeping also plays a crucial role in business growth strategies. Having all of your financial, legal and sales data well organized and easily accessible can help you assess business performance, identify growth opportunities, avoid shortfalls, make better decisions and see your money grow!
1. Sales and Inventory Records
Monitoring sales, supplier and inventory data lets you see how well your business is performing.
Use this information to determine profit margins and support strategic actions for improvement.
2. Financial Statements
Balance sheets, profit & loss statements, cashflow statements, bank statements etc..
With your financial papers in order, you will always have a clear overview of your business’ financial health.
3. Tax Information
File your tax information by year.. tax returns, receipts and all pertinent data that you need for tax records. Track tax deductible and non-taxable items.
With everything to hand, you’ll save time and money every year.
Regular reviews of your records enables you to make strategic business decisions based on key information. When business is seeing peaks and troughs in performance, it is beneficial to understand and control incomings and outgoings to maintain a strong cashflow.
At Accounting for Growth, we ensure that our clients are not putting their businesses, and themselves, at serious risk. We know you have many priorities to address when running your business, and record keeping can take away from the time you need to run your business…
We can help you manage everything efficiently and cost-effectively, by…
• Providing you with easy-to-follow guidance on financial reporting and KPIs, giving you the key information for running your business and making the right decisions.
• Identifying the specific records your company needs depending on a number of factors, such as the type of business, your company’s goals and management requirements, as well as the cost factors. Based on the relevant factors, we will help you determine what information you will need from your records.
• Helping you to select the right accounting and reporting systems for your requirements, when you need to invest in software solutions.
• Giving you unlimited support and advice whenever you are facing challenges or just need some questions answered. We can talk you through what is best for you and your business.
So the solution is simple: A little training and guidance from us OR we will do it for you. It will pay for itself many times over and
don’t forget, a no-obligation introductory consultation with us is free!
So don’t delay in getting the financial health of your business fully checked, give us a call and we’ll talk to you about the best options,
strategies and solutions for your business needs.
Call us on 
01-2764254 or email: alanj@accountingforgrowth.ie
Complete and Accurate Financial Record Keeping is Crucial to Your Business Success!
