How bad bookkeeping will hurt your business
It’s a difficult time for many at the moment and business as we know it has been thrown out of the window. It’s a situation few were prepared for – can you blame them? It means many business operations are up in the air as bosses try to accommodate missing staff and spread out the workload.
In times of crisis, you no doubt do the best you can. But there are certain aspects you can’t let fall by the wayside. Yet it can be all too easy for that to happen. One part of your business that might suffer is your bookkeeping. We’re here to remind you why you shouldn’t let that happen.
It will cost you time
If you have in-house staff to help you with bookkeeping and payroll, then you might not be prepared for the eventuality they can’t do the work. If they’re off sick, the responsibility might fall to you. But the time you spend doing that – which can be a lot of time – leaves you with less space to do the tasks you usually do.
It’s a domino effect; you put more time into this job and everything else suffers. Or you try to juggle everything, and the quality of work suffers. And if you end up rushing, you’ll only hurt yourself later on. Inaccuracies can cost you more than time (we’ll get to that, though). Even worse, if you have inaccurate data, how can you make good decisions for your business? How can you guide it through a tough period if everything your decision is based on is wrong?
It will cost you money
Inaccuracies can land you in hot water with bodies like HMRC. Poor record keeping will inevitably lead to more tax errors. Whether you pay too much or too little, you’re losing out. Even if you don’t mess up the tax, money can still leak away without you realising.
If you don’t keep tabs on all outgoing expenses, how will you notice that monthly charge you don’t need anymore? And if your clients are going through the same difficulties, can you trust them to pay you without you asking? Probably not, but if your bookkeeping isn’t up to scratch, you might miss who hasn’t paid you.
It will cost your employees
Speaking of paying someone, you definitely don’t want these issues to affect your staff. But if your mistakes can cost you time and mess up your taxes, who’s to say it won’t hurt your staff? They need a reliable payment to keep them going, to keep food on the table. Even simple mistakes that delay wages by a day can have devastating effects.
25 million people in the UK are living paycheck to paycheck. And 50% of our population are financially vulnerable. Who knows, even more people might be now. If there was ever a reason to get your bookkeeping in order, this is it. You have a duty to your employees to help them and make sure everybody makes it through tough times okay.
If you are ever struggling, don’t be afraid to reach out and look for assistance. There are government initiatives in place if you need the help, and plenty of companies are open to offering advice.
At Big Hand, we are always on hand to offer advice to those who need it. Our accountancy services are open to anyone who needs the support. If you would like to know more, feel free to get in touch on 0161 327 2911.