Do you have the time or experience…
to do your own bookkeeping?
Bookkeeping Helps You Budget
Bookkeeping is important because it helps you budget. When income and expenses are properly organized, it makes it easier to review financial resources and expenses.
In most cases, your business has to file a tax return every year. And every year, millions of business owners are scrambling through their desk to find missing paperwork. Sound familiar? The tax filing process for your business and your tax preparer can be made more efficient by simply having a bookkeeping function within your company.
Being organized is a skill every business owner should have. You should be able to find information regarding your business at any time.
Bookkeeping is important because it helps with business analysis. With analysis comes better decision making. In order to make the best decisions possible, you need to have access to all available information. Bookkeeping provides this information.
Peace of Mind
Disorganized books can weigh heavy on your mind as a business owner. With all of the other factors of running a business, your bookkeeping should not be keeping you up at night.
Track Profit and Growth
Bookkeeping is important because it shows your business’ profitability. For example, the income statement is one of the financial statements that is prepared from your bookkeeping. On the income statement, you can see if your business is profitable or not. Without this information, it is impossible to know how well (or not so well) you’re doing.
Easier IRS Audit
In the unfortunate circumstance, you are audited by the IRS, you want to make sure your books are in order so that your Accountant can represent you successfully. Messy books prolong the auditing process, making your business more susceptible to fees and penalties.
Requirement Under Law
Last, but certainly not least, the law requires you to keep financial records for your company.