Benefits of Bookkeeping

Bookkeeping is the first step in the accounting process and arguably the most important one. A bookkeeper will compile all financial data – from transactions to wages – and turn them into easy-to-read reports that are ready for future analysis.

There are multiple benefits to having a good bookkeeper, and with all the changes happening in the financial world, every business will want to have such a person on staff.

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1. Detailed Recording

A thorough, dedicated bookkeeper will always keep detailed records up to date. This complete recording will not only assist you in supervising your business accounts, but will also be of great assistance once you need your financial statements — or once your company is audited — as this process will be much faster and much cheaper.

2. Always Compliant with the Law

A good bookkeeper will always comply with the latest legal regulations and will make sure all your accounts and books are up to date with any recent legal changes. Because the bookkeeper holds himself or herself accountable for any work that they do, you can rely on them to clear any mistakes. This saves time and effort for the bookkeeper, which in turn saves money for the company.

3. It Is Easier to Plan

Once you have a detailed recording and a better overview of the company’s accounts, it is much easier to plan and predict the future. When you are confident in your data, you can solve issues quickly and you can grab any opportunities that present themselves, without having to fear miscalculations in the accessible data. Thanks to the overview of profit and loss evolutions in the balance sheet, you will be able to know exactly what to do and how much time you have to do it.

4. Instant Reporting

Even though you will need to wait for the accountant or the auditor to finish their reports to conclude official financial statements, you will always have an updated balance sheet to inquire about the current state of the accounts. You will be able to present these data to any interested party, providing additional confidence both in your work as a manager and in the company’s health as a whole.

5. Better Relations with Banks and Investors

That confidence will definitely improve business relations with your investors and shareholders. Additionally, banks will be more willing to provide you with more affordable loans once they can see how your company is thriving. Any time an investor is interested in the health of your company, you can just show the current detailed sheets and prove that the company is making major success. 

6. Better Tax Prediction

While the IRS will demand an official financial statement from your company for the purpose of taxation, you will be able to predict the outcome more accurately if you have access to detailed balance sheets over time. With them, you can keep an eye out for trends in your company’s business and be more confident in the amount of taxes you’ll be expected to pay at the end of the fiscal year.

7. Faster Business Response Time

When you have real-time information about the state of your accounts, you will be able to react quickly to any changes that happen to the market or to your business. You will know the extent of your resources and current expenses, providing you with accurate insight: is it the right time to act?

8. Faster Financial Analysis

As bookkeeping tends to be less expensive than accounting, it’s helpful to know that by having detailed records you will shorten the length of time an accountant will spend on analyzing your accounts and creating financial statements. This will not only diminish the cost of accounting, but will also give you more time to act upon the information provided by the analysis and change any strategies you might have planned.

9. Easier Audits

Producing financial statements is much easier and faster when you have a better data-recording model. You will have a much easier time conducting an audit than you would if your accounts are messy, disorganized or even slightly outdated. Any auditor you employ will just need to access the detailed balance sheets and compare them with the statements to know exactly what was done. They can produce their report quickly and any mistakes will float to the surface.

What Are The Benefits Of Bookkeeping? 9 Bookkeeping Benefits For Your Business


There is not a single business person or company who wouldn’t benefit from having a detailed bookkeeper. And when you are hiring a bookkeeper online, you can have a much wider choice and be certain to find the best person for the job for the most competitive price. Because you’re picking from a larger pool, you’ll have more relevant, highly qualified professionals to choose from. 

Posted: 10 Jul, 2019

26 thoughts on “Benefits of Bookkeeping”

  1. Thank you for explaining that you can keep an eye out for trends better and be more confident in the amount of taxes you’ll be paying in the coming year. My friend is always thrown for a loop when taxes come around and she wants to make sure that she can be more prepared with her business. I’ll be sure to mention this to her and see if bookkeeping could be a good solution for her.

  2. You bring up a good point that a bookkeeper is up to date on the latest regulations and can keep your books in order. I think it is important to make sure all your financial records are updated and follow all local and federal laws. It would be smart to consult a professional bookkeeper if you own a business.

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  4. It sure was nice when you said that a bookkeeper could ensure that financial statements are always accessible and up-to-date. My husband and I will ask the management of the church where we usually go every Sunday to consider. They mentioned that they need help in keeping their financial records and ensuring that all payables are paid on time, so they must consider hiring a virtual bookkeeping service.

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  9. It’s great that you explain that using a bookkeeping service can help your business save money. My wife and I want to start a small business this month, so we should probably hire a professional bookkeeping service for it. I’m going to search for a good provider of bookkeeping services in the area that we can employ.

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  13. My cousin is preparing to launch her own business in a few months, so I am researching things that would be able to help her in her journey. Good thing that you discussed a competent bookkeeper will ensure that all of your accounts and books are up to date with the most current legal changes and will always adhere to the most recent legal standards. I’ll be sure to share this with her since it would be beneficial for her business in managing its finances. I’ll make sure to check out professionals that would be able to help her out in the future.

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