Why is Bookkeeping Important for Small Businesses?
Over 95% of businesses fail within the first 5 years. A major reason for this failure can be traced either directly or indirectly to bookkeeping and accounting.
Over 95% of businesses fail within the first 5 years. A major reason for this failure can be traced either directly or indirectly to bookkeeping and accounting. As we are all aware, finance is the lifeblood of any business and finance is the foundation of any capital raising either via equity or debt. Also, to ensure your business is in order and will continue as a going concern, understanding your finance and accounting is critical.
The number 1 requirement of any investor and debtor is a financial plan that shows how well you have been doing and your future projections. Without proper bookkeeping, this becomes a challenge.
Also, a lot of businesses fail because Entrepreneurs are not making critical business decisions based on data. With proper bookkeeping, you will easily identify products that are doing well, when and where they are doing well and possibly understand the Why. This then can aid your decisions and strategy. You will also identify products that are not doing well.
Cost management and optimization are also critical to business success but a lot of businesses that do not keep proper records can find it difficult to identify income leakages, high expense lines and so on.
Keeping your business record does not have to be a difficult or expensive task when you use an accounting solution. And with Simplebks, we provide you with an easy-to-use platform to record your books yourself or invite your team members to input your business data (Sales, Purchase, Expense, etc.) and then generate online, real-time reports of your Profitability, Balance Sheet and Inventory. We also provide detailed analysis based on this data to guide your business decisions.
Are you an owner of a supermarket, retail store, restaurant etc,? With our Point of Sale dashboard, you can easily scan barcodes, type product names to capture your purchase or sales and print invoices for your customers.
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