Businesses are making financial transactions daily. In a healthy business, work is fast, delivery is fast, payments are fast.
So naturally, tracking these transactions should be fast too.
Daily bookkeeping will be a game changer for your business, no doubt about it.
But business owners don’t always get the full picture of why real-time information is so important.
It’s not just about having the numbers daily, it’s about what having the numbers daily enables you do to.
If you’re not getting daily bookkeeping, you may be able to relate to one, or all of the following:
1. You’re seizing the quarter, not the day.
If your books are updated every quarter, you’re unable to make the most of opportunities as they arise. You have true power when you have a real-time update of where your business is at, because you can capitalise on an opportunity as it shows itself.
This is exactly how Steve grew his marketing agency. Without the daily cash flow transparency, he wouldn’t have had the confidence to pitch for bigger projects, and eventually expand his business into the Singapore market.
Having the tools to be proactive rather than reactive means you can make the smart business decisions quickly. You can increase stock that’s selling well, adjust your prices to improve profit margins, hire that person to bring new skills to the business.
2. You’re checking your bank balance daily instead, and it’s causing you stress
So often we speak with business owners who admit that they habitually check their bank balance to know if they have enough cash for the next project, the next stock purchase, the next event.
Looking at a bank statement is like reading a cash history book. It gives you no indication of payments creeping up around the corner. Yes, your bank balance accounting may be carried out daily, but it’s not daily bookkeeping.
When we automate bookkeeping in Xero, and use the processes and procedures to make sure your numbers are up to date, you’re blessed with the ability to forecast.
We can project how much cash you’re going to have, so that you can make changes to affect cash flow now, and avoid any pitfalls you’d be unaware of when only relying on the bank.
Don’t get stuck chasing overdue invoices so that you can start a project like Piers. Instead, let us help you take a look into the future of your cash flow so that you’re always ahead of the game.
3. You’re worrying more than you need to be about Tax
Notice that we left tax till the very last point? That’s because being compliant with HMRC is a standard with daily bookkeeping. It’s just the tip of a very exciting iceberg. That being said, fear of your tax bill might be holding you back from even thinking about growth – so it’s crucial to mention.
Your tax obligations shouldn’t be controlling the way you run your business.
With daily bookkeeping, you’re able to log in at any time and see how your VAT liability is increasing. You’re not going to lose track of what you owe HMRC, which means you’re not going to be stung by the bill. You’ll have time to prepare if you need extra funds to cover yourself. Worry about tax can be a thing of the past, whilst you prepare for a profitable future.
If this is all sounding too familiar, you need a fresh approach to your bookkeeping. Take a look at how we do things here at FF HQ or jump straight into our questionnaire if you want to know how daily bookkeeping will work in your own business.