{"id":350,"date":"2019-03-25T11:48:23","date_gmt":"2019-03-25T11:48:23","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=350"},"modified":"2020-07-18T15:06:15","modified_gmt":"2020-07-18T15:06:15","slug":"reasons-bookkeeping-essential","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/","title":{"rendered":"6 Reasons Why Bookkeeping Is Essential For Your Growing Business To Succeed"},"content":{"rendered":"\n<figure class=\"wp-block-image alignnone size-medium wp-image-519\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"281\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2019\/03\/6-Reasons-why-Bookkeeping-is-Essential-for-your-Growing-Business-to-Succeed-500x281.png\" alt=\"6 Reasons why Bookkeeping is Essential for your Growing Business to Succeed\" class=\"wp-image-519\"\/><figcaption>6 Reasons why Bookkeeping is Essential for your Growing Business to Succeed<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As a proprietor of a growing business, you must be able to keep track of your company\u2019s financial position at all times. Knowing the net profit and loss statements, payable, receivables and other financial data is critical to running your business successfully.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without this information, you cannot make informed decisions regarding the day-to-day operations of your business, nor formulate the right strategies to help your business grow.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/nbfcs-vs-banks-business-loan-india\/\">Why Choose NBFCs Over Banks For A Business Loan In India<\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#Here_are_the_top_6_reasons_why_you_need_to_focus_on_bookkeeping\" >Here are the top 6 reasons why you need to focus on bookkeeping:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#1_Build_A_Business_Budget_And_Stick_To_It\" >1. Build A Business Budget And Stick To It<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#2_Work_Out_The_Best_Ways_To_Reduce_Your_Tax_Burden\" >2. Work Out The Best Ways To Reduce Your Tax Burden<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#3_Stay_On_Top_Of_Payable_And_Receivables\" >3. Stay On Top Of Payable And Receivables<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#4_Avail_Business_Funding_Easily\" >4. Avail Business Funding Easily<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#5_Make_Informed_Business_Decisions_And_Plan_For_Expansion\" >5. Make Informed Business Decisions And Plan For Expansion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/reasons-bookkeeping-essential\/#6_Enjoy_Peace_Of_Mind\" >6. Enjoy Peace Of Mind<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Here_are_the_top_6_reasons_why_you_need_to_focus_on_bookkeeping\"><\/span>Here are the top 6 reasons why you need to focus on bookkeeping:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Build_A_Business_Budget_And_Stick_To_It\"><\/span> 1. Build A Business Budget And Stick To It<br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A budget is a financial road map for your business. Without a budget, you are likely to make several crucial mistakes like\u200a\u2014\u200aoverspending\/under spending on inventory, missed payments, delayed payments, missing out on critical expenses including employee salary and more. You need a budget to help you plan your current and future expenses while reviewing the financial resources in hand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can quickly build a business budget, when your books are in order. When your financials are organized, it makes it simpler to plan a budget, which in turn, will help you review your resources and predict expenses.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-5-ways-business-benefit-global-holiday-season\/\">Top 5 Ways Small Businesses Can Reap Benefits Of Global Holiday Seasons<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Work_Out_The_Best_Ways_To_Reduce_Your_Tax_Burden\"><\/span>2. Work Out The Best Ways To Reduce Your Tax Burden<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tax returns are one of the biggest challenges for millions of business owners and entrepreneurs all across the country. Missing or incomplete paperwork makes business owners end up paying huge taxes that could have been avoided.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With organized bookkeeping, you can avail financial information about your business all prepared for tax returns. Instead, of rushing around for receipts and invoices at the last minute, you can figure out the best ways to reduce your tax burden.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/ecommerce-business-with-syncing-technology\/\">It&#8217;s Time To Grow Your eCommerce Business With Smart Syncing Technology!<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Stay_On_Top_Of_Payable_And_Receivables\"><\/span><strong>3. <\/strong>Stay On Top Of Payable And Receivables<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Staying on top of payable (the money you owe to others) and receivables (the money that others owe to your business) is extremely important to avoid cash flow problems. By making bookkeeping an essential part of your day-to-day operations, you can ensure that your working capital doesn\u2019t dry up.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Avail_Business_Funding_Easily\"><\/span>4. Avail Business Funding Easily<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">All business owners avail external funding at some point or another to grow and expand their business. To <a href=\"https:\/\/www.indifi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">avail business loans<\/a>, you have to provide certain details about your business like\u200a\u2014\u200aprofit and loss statements for the last few years, trial balance sheet and more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By organizing your bookkeeping, you can furnish all the necessary documentation required by your lender without any problem. Digital lending platforms like <a href=\"https:\/\/www.indifi.com\/\">Indifi<\/a> prefers businesses that are organized and your meticulous bookkeeping may even help you avail loans at reduced rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Make_Informed_Business_Decisions_And_Plan_For_Expansion\"><\/span>5. Make Informed Business Decisions And Plan For Expansion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In order, to take the best decisions regarding your business, you need to have all the pertinent information available at hand. Bookkeeping is what provides you with this information. Whether it\u2019s opening a second location, expanding your market, purchasing new machinery, hiring additional staff or any other business decision\u200a\u2014\u200abookkeeping helps you make smart decisions, by helping you analyze the financials of your company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Enjoy_Peace_Of_Mind\"><\/span>6. Enjoy Peace Of Mind<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A disorganized business is sure to give you sleepless nights. When your books are up-to-date, you can breathe a sigh of relief, knowing that your company\u2019s financial information is at your fingertips at all times. Be it the income tax department or lenders; you can furnish the required information immediately. This will put your mind at ease, helping you focus on other core business practices.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/merchant-capital-business-require-working-capital\/\">Merchant Capital- A Shot In The Arm To Small Businesses That Require Working Capital<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Running a Business without Proper Bookkeeping is like heading into a forest without lights.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bookkeeping provides you with both the macro and micro view of your business. By properly maintaining your financial records, you can check the pulse of your business at all times. Apart from supplying you with all the key information about your business, proper bookkeeping helps you run your business effectively and efficiently.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure to hire a qualified accountant to help you with your bookkeeping.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-cyan-blue-color wp-block-paragraph\"><a href=\"https:\/\/www.indifi.com\">Apply for Business Loans in India<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a proprietor of a growing business, you must be able to keep track of your company\u2019s financial position at all times. Knowing the net profit and loss statements, payable, receivables and other financial data is critical to running your business successfully. Without this information, you cannot make informed decisions regarding the day-to-day operations of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[125,12,117,23],"class_list":["post-350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-funding","tag-business-loans","tag-entrepreneurship","tag-loans"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=350"}],"version-history":[{"count":13,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions"}],"predecessor-version":[{"id":3554,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions\/3554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/519"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}