‘Making good judgement when someone has complete data, facts, and knowledge is not leadership- its bookkeeping’ – Dee Hock
This is imperative for a profitable business. Without accurate and complete records of business transactions the business is doomed to fail at its onset. Studies on SMEs have also disclosed that about 60% of small businesses fail within the first three years due to management inefficiencies. Knowledge and skills in bookkeeping is especially a factor that impacts positively on sustainability and growth of SMEs. The financial transaction recorded must be objective, sufficient, relevant and reliable to make informed decisions and judgements by interest groups. Despite the importance of book keeping a number of SMEs have not given this much attention.
Bookkeeping is the recording of all financial transaction in a systematic and logical manner. Transactions include sales, purchase income, and payments by an individual or organization. This is usually performed by a bookkeeper using common methods of such as single entry and double entry systems.
Every serious entrepreneur must as a matter of fact be able to maintain proper records of his or her business transactions or hire a skilled accountant to do so.
Importance of Bookkeeping
- Bookkeeping helps you plan ahead for your business.
- Bookkeeping keeps a clear picture of your company’s financial health.
- Bookkeeping helps your business make timely payments of loans, rents, bills, taxes, etc.
- Bookkeeping helps you evaluate the performance of your business.
So……Start your own booking today and watch your business stand the test of time
