Why is bookkeeping important? | FAQs

2 minutes   |  CAREER ADVICE, FINANCE

Understanding your bookkeeping reports can help you determine how your organisation is doing in the bigger picture. You don’t have to be a professional accountant to master your finances or your financial management.

Watch the video below featuring Gareth Cotten, Head Tutor on the UCT Bookkeeping online short course, to understand why getting bookkeeping certification and training is vital to your organisation’s success.

There are two key bookkeeping tips for you as a small business owner or freelancer manning your own financial management. The first is that having a keen understanding of your finances and bookkeeping will you give you a better understanding of how your business or organisation is doing from a financial management perspective, in the bigger picture. You’ll be able to identify if your bookkeeping is keeping your business healthy and find out where things could be improved. The other important reason for sound bookkeeping as a small business owner or freelancer is legislative. If your bookkeeping is in check, you will be able to comply with external stakeholders like tax authorities.

If you don’t commit to correct bookkeeping, it is impossible to answer to external institutions. Getting leading bookkeeping certification will help keep your business healthy and accountable.


Want to learn the most relevant skills and get bookkeeping certification from a world-class university?

Find out more about the University of Cape Town Bookkeeping online short course.


Transcriptions

Bookkeeping is important for two reasons:

One, internally it helps you to make sure that you have a very sound and fixed picture of how your business is doing. It helps you track your performance and see how the business is doing and to see how healthy it is.

The second, is a slightly more external focus in that from a legislative perspective you definitely have to be able to show, prove to the, for example the tax authorities how your business is doing and if you are not tracking your bookkeeping correctly it’s impossible to do that.

So there is an internal focus and an external focus for bookkeeping.