7 Ways Bookkeepers Can Help Improve Cash Flow

Hi There,

Bookkeeping is an essential part of everyone’s life. You have to manage your finances and organise your books because all of us have to pay our taxes at the end of the day. Accounting makes the lives of entrepreneurs easy, and being an entrepreneur I totally understand this. However, I learnt about its importance in an organisation the hard way. I was good at number crunching so never thought about hiring a professional to do the books and take a look at the inferences. So my business was in its second year and we were planning to grow, so I invested in equipment that would allow us to produce more in less time. However, over the next six months, I got burdened by massive debt I had taken to purchase the equipment. It was proving to be a bad decision as I did not take a look at the accounts before buying. I realised that if I had a bookkeeper, he would have definitely advised otherwise. Anyway, I had to sell the machine and tried to make the payments as soon as possible. However, I was not able to get more capital. I finally understood that I needed professional guidance. Just being good at maths doesn’t give you the sense of financial management. You need an expert to help you with the day-to-day accounting functions that can help keep the books updated and manage debts. Bookkeepers help by making accurate and error-free calculations and recordkeeping which comes handy at the time of filing taxes and submitting financial reports. Although I had been doing the reporting for the past two months, I realised how bad I was at it when my bookkeeper showed me the right way to do it. I was amazed to see the improvement in processes when we started using accounting software to do most of the stuff. It was incredible how things got streamlined and I had to spend so less time on the books. The deductions made by the bookkeeper made a lot more sense to me when he explained each and every aspect of recordkeeping. Last but not the least; I was blown away by his techniques of improving the cash flow. It was amazing how managing relationships with the suppliers got us supplies on time and how he got me refinanced to a low-interest business loan. We started invoicing diligently and there were no delays in getting payments. Finally, we started achieving the results with efficient bookkeeping.