When being briefed before starting work on a new audit or set of accounts one of the first questions I always ask is – who does the bookkeeping?
Bookkeeping is the process of recording all the day to day transactions of a business.
The reason I ask this question so early is because good bookkeeping makes the preparation of accounts and conducting an audit so much easier. We can quickly see what has gone on during the period, where we need to focus our attention and prioritise the order of our work.
There are benefits to managers of businesses as well as their accountants.
3 benefits of good bookkeeping:
Good bookkeeping will mean you can easily track the cash collected against sales invoices you have raised. Collecting cash is essential to protect the liquidity in a business.
Regular bookkeeping will allow you to see if there is any information missing – by setting aside time each week or month to summarise your bank transactions you will know if you have received all your bank statements or not.
By carefully looking at your payments you can be sure that you aren’t regularly over paying any of your suppliers.
If you need help with any of the above please get in touch with us.
Jonathan Cohen – Audit Team
Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272; or visit http://www.westbury.co.uk.