Why Accounting Is Important To Your Business

Why Accounting Is Important To Your Business

Most businesses aim to see an increase in business activities year on year, but how do you track how you are actually performing?  This quickly demonstrates how important accounting is for a business. Timely and accurate accounting is important to businesses, helping the business owner run their business smoothly, and have management over their cash-flow and other key performance indicators.

In this blog post we share just some of the reasons that accounting is important to your business. If you have not yet looked at the accounting solutions of your new business, call our team now. We are your friendly and local accountants in Peterborough, ready to help you understand your business accounting.

  • Accounting is essential to help you understand your own business. If you don’t keep track of your business accounts you don’t know what your income and expenses are, if you can afford new equipment, afford that new member of staff or if your business is even making a profit.

 

  • Good business accounting ensures that your business is organised. Working with a local accountant to regularly complete your accounts will help you see where your business is at all times, and how much money you have available in the business.

 

  • It doesn’t matter if you’re a huge limited company or a self-employed sole-trader, accounting is important because it gives you a year-end report, providing necessary information to pay your taxes and provides the essential information for Companies House and HMRC. It is also a great report to look over and see how the business is getting on, comparing one year with another and tracking business performance.

 

  • Accounting is important to your business because it helps make decision making easier. By looking at your accounts with a reliable, understandable accountant you can see how to run your business, the stock you need and how much money you have for business growth, new equipment, employees or profit extraction to you, the owner.

 

  • If you are applying for business loans or buying new equipment on finance , you will need to clearly show your business accounts and ability to service debt. This information will also be required if you choose to sell your business in the future. The business accounts will allow others to see if your business is a good investment and if lending money to you or your business is a sound investment.

 

  • You can look over your business accounts throughout your accounting year with your accountant to measure the performance of your business. There are lots of accounting ratios and key performance indicators that you can use to measure the success of your business. We will help you understand the best ratios for your business, so you fully understand your business, performance, areas for improvement and its successes.

 

Need help with your business accounting? Call our friendly team of accountants in Peterborough now.

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Testimonials for AK book-keeping

Electronics online retailer

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Chris

AK Book-keeping
5
2015-10-23T16:25:46+01:00

Chris

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Carpet & Lighting retailer

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Simon & Cathy

AK Book-keeping
2015-10-23T16:26:07+01:00

Simon & Cathy

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Multiple Franchise Owner

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

Bob

AK Book-keeping
2015-10-23T16:44:40+01:00

Bob

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

John – Building Company owner

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective.

AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

John

AK Book-keeping
2016-02-05T16:33:23+00:00

John

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective. AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

Online Retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Online retailer

AK Book-keeping
5
2018-07-02T22:05:34+01:00

Online retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Peterborough online retailer

Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
AK Book-keeping
5
2018-09-19T18:24:06+01:00
Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
5
3
AK Book-keeping