What Is Bookkeeping and Why Is It Such A Nightmare?

Major Points of the Article

• Bookkeeping has moved from the conventional book to computers/cloud-based systems
• Cloud-based bookkeeping can be a massive time-saver
• It can be used to project into the future and help you plan for cash flow fluctuations
• Your expenditure, and seeing if you are on budget, can be monitored with bookkeeping

What Is Bookkeeping

It's essentially the activity of a business keeping records of its financial affairs. Its invoices, sales, expenditure, R&D, growth activities, and more are all itemized within the books which is then reported to the ATO through a BAS lodgement or end-of-year filing.

How It Has Changed

Bookkeeping is a tedious and often time-consuming task to manage. In the past, you would have to keep records in physical ledgers or books but with modern technology like computers and cloud-based systems, bookkeeping can now be done digitally—saving you time that was normally spent on manual inputting of data.

Cloud-based bookkeeping can even be used for prospective analysis so you can better plan for cash flow fluctuations or keep an eye on where your money is going. Some cloud-based bookkeeping examples you can use are below.

How is your bookkeeping going?

This laborious task is often hated by some, especially when it is time to declare the BAS statement. However, take the opportunity to review what is going on. Often your company will overspend without even realizing it. In fact, in the work I do, I usually find up to 8% in budgetary savings that can be used in other areas to grow the client's business faster.

How is your business going? Reach out and let's have a chat.