Importance of maintaining accurate financial records - Mitrefinch

0%

Mitrefinch logo

Our blog

Book a demo

Importance of maintaining accurate financial records

Published: April 6, 2016

Maintaining accurate financial records is imperative for all firms, but especially for those that are just starting out.

Not only does it make budgeting so much easier, but it is also vital for tax purposes. Failure to keep on top of the financial records can quickly lead to disaster for many firms.

Whether this comes in form of tax audits, a loss of customers, fraud and the inability to procure new services or price products correctly, the outcome is equally undesirable for companies.However, maintaining financial records may not be as simple as it sounds for some businesses.

Below, we have produced a guide detailing exactly how you can stay on top of the cashflow once and for all.

Technology

Keeping manual financial records is not always as easy as it sounds. For the average, busy company, new staff members may be coming in and out all the time, with different products arriving on the shelves, and clients coming or going.

Therefore, by far the best way to keep on top of it all is to use technology such as time allocation and job costing software that can help you with your budgeting requirements and make it easier for you to price your products and services correctly.

It can also help you to track productivity at your firm, which will also have an impact on its profitability.

Hire an accountant

The vast majority of firms nowadays either hire an accountant or employ the services of an accountancy firm.

This means that every small financial detail can be handled by a knowledgeable team of professionals that are trained to keep all of your finances in order.

Build a database

Entering all of your budgeting details and HR information onto a central, easily accessible database can make it much easier to see at a glance where you need to focus your attention on.

As mentioned above, there are many software solutions that can do this for you, including payroll technology.

Don't waste time

Empower your teams with integrated Time and Attendance Software, HR Systems and Payroll Solutions