To succeed in business, one of your most important tools is financial analysis, based on your business records. Accurate financial records will help you answer some very important questions. Are you making money, or losing it? How much? Is your business on sound financial ground, or are troubles lurking ahead? A sound bookkeeping system is the foundation on which all of this valuable financial information can be built.
As a small business owner, you probably rely on an outside accountant to do your taxes and prepare financial statements. However, like many small business owners, you may find that it's too expensive to pay an accountant to do routine bookkeeping chores. Someone in your organization must take on the responsibility of keeping an accurate set of financial records. Fortunately, you may find this task easier than you thought, especially if you use your computer.
Importance of Good Records
Unless your business is accounting or bookkeeping, keeping financial records is probably not what you do best. Most likely, you'd rather spend your time selling your product or service. However, if you are going to run a successful business, accurate and timely financial information is a must.
Here are some of the reasons why you need a good financial recordkeeping system:
- Monitoring the success or failure of your business.
- Provides you with the information you need to make smart decisions.
- Helps to Obtain Bank financing and other sources of capital.
- Allows you to prepare a proper budgeting and expense plan.
- Necessary for preparing your income tax return.
- Shows compliance with federal and state payroll tax rules.
- Helps with Submitting sales taxes.
- Helps with Distributing profits
At the end of the day, a solid bookkeeping program can mean the difference between profits and disappointment. It is generally the most overlooked necessity of a strong business plan. For most small business owners and entrepreneurs this daily task of inputting and clarifying expenses gets overlooked and ends up costing a significant amount of money in losses to the IRS. Be sure you get a plan in place and keep more of the money you work hard to make.
To talk to a representative about your Bookkeeping needs, call 866.893.5730
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