The importance of good record keeping during the pandemic

As we adapt to regularly shifting circumstances, and more remote working during this pandemic, it has become very clear how important good record keeping is as a key aspect of business continuity planning and one that shouldn't be overlooked.

And if there's one positive for business that's come out of the coronavirus, it is that it's been a strong reminder to companies that your financial records are not just requiring of a once a year focus, but are crucial to your operations day in, day out.

The accuracy of your accounts and the ability for these to keep you informed are the fundamental backbone of your business.

With good records you can manage and monitor the progress of your company effectively and efficiently. Whether that's to help manage your costs, for legal, regulatory, compliance, or tax reasons, or to help run and improve your business with necessary funding.

Accurate financial records can increase the likelihood of business success and will assist you in making informed decisions in good time. They'll show whether your business is improving, which items are selling, or what changes you need to make. Without good records, it is simply impossible to determine the financial position or profitability of your business.

With the right accountant on-board and the right records readily accessible and understandable, a business owner can identify areas for expansion or improvement, whether working remotely or not. Your success in this regard will rest on good record keeping practices, not least in knowing the liquidity of the business and in the ability to direct cash flow to maintain your operational activities. 

Equally so, to comprehend the full financial picture that could drive future business growth. So, proper analysis of your records by your accountant can help in making strategic decisions, such as changing the focus of the business. Something many organisations may be considering at this moment in time.

Such good practice will enable you to regularly monitor the overall performance of your business, compare this against previous years, identify sources of income and tax, as well as track expenses, so as to be more informed and able to make decisions that much faster. Importantly, it will allow you to comply with regulatory obligations and make your required year-end reporting preparations less arduous, knowing that accuracy has been sought, internally and externally via your accountant, throughout the year.

In short, your accountant can be your best ally during this pandemic in ensuring you maintain accurate records, so enabling you to have a clear view of your financial position, helping you develop plans, evaluate opportunities, access government support where available and help you to conduct business now and in the future, ensuring that funds are in place to enable you to do so.

For more information and to arrange a no-obligation meeting with a GSM Partner contact us today on 020 7935 3793