House keeping book is a life saver for all the businesses. It is a human nature; we forget things as soon as they happen. Because, there are so many things going o in our mind at the same time and we can’t recall all the things after a lapse of time. In this way, we forget the most important conversations, messages, records etc. For example, we have started a new business but are not keeping the records of day by transaction. We perceive that we shall write all the expenses in the end of the month but we do not have any idea that when that day comes, we shall forget almost half of the transaction and then we are left with no other option other than regrets. So, it is important for the all business community to have a book in which all the things have been mentioned clearly.
Benefits of keeping a book:
Following are the prominent benefits of keeping a book.
- Total Clarity of Receivables:
We have a total clarity of receivables which we have in our hand in the end of a month. For example, we have a business of selling cheese to different pizza chains. WE have been supplying them for a long period of time. The trust has already been built and we sell them even on credit. The only thing we should do id keep all the records of transaction in a book so that there is no confusion in the end of a month when the time comes of payments. It also gives us an idea as to how much we have earned this month and how much money shall we have in hands in the end of a month.
- Profit Earned:
When we keep a record of selling of finished product and buying of a raw material, we come to know how much we have invested but subtracting all the expenses including, investment, salaries, rent, bills and other expenses. We have a fair idea as to how much we have earned in a particular month. We also compare the amount with the amount of last few months. It tells us that either our business in flourishing in a best way or not. When we see, the business in flourishing then we plan to expand it and if there is less profit then we plan to minimize or shut down the operations of a business.
So, you already have started a business and busy in attracting new customers and unable to focus on the book keeping accounts then you do not have to worry, EFIRM is here to help and support you. We provide bookkeeping services in Melbourne CBD and also support small business accountant in Melbourne cbd. Visit our website and avail our services.