When your bookkeeping is outdated or inaccurate, you won't have reliable numbers to review or report. This could mean missing critical reporting deadlines, which invites estimation uncertainties and the risk of erroneous financial implications.
Your business performance mirrors the quality of your bookkeeping. Without up-to-date books, you can't generate accurate financial reports, impeding your ability to assess your business's health and decide where to invest resources.
Hoping for a loan or credit line? Shoddy bookkeeping won't strengthen your case. Lenders require well-organised financial records to confirm your repayment capabilities. Disorganised books make it hard to convince them.
Poor bookkeeping can reduce your business's value. Financial history underpins business valuations, and low-quality bookkeeping leads to a subjective valuation, which is harder to defend.
Substandard bookkeeping can hinder your compliance with SARS, leading to potential audits, penalties, and missed business opportunities. This added stress can result in unproductive work hours.
If SARS audits your business and your bookkeeping is subpar, you'll be scrambling to organise your information instead of responding promptly, leading to potentially hefty penalties and reduced credibility.
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