Bookkeeping plays a crucial role in any business, regardless of the size. Keeping books up to date may not be everyone’s cup of tea, but doing it properly can save your company from troubles later on. Here are a few reasons why bookkeeping should be properly done from the get-go.
Paying Bills On Time
Implementing a solid bookkeeping system goes a long way. One of the primary functions of bookkeeping is making sure bills are paid for inventory, supplies, and other operational expenses.
Strategic planning is essential to the success of a business. It is, in fact, the core responsibility of the business owner. Expertly processed bookkeeping grants you access to your company’s past financial performance which can be used to create a road map that tracks your progress.
Stress-free Tax Audits
According to a 2017 study by the U.S. Internal Revenue Service, only 1 in 100 businesses gets audited each year. As a small business owner, your chances to be that one in 100 increase upon failing to report finances properly. Bookkeeping ensures your books are organized and updated, so you will not have to worry about audits.
Small business owners are entitled to tax deductions. With the help of a qualified bookkeeper, you can take advantage of almost every available tax deduction.
Setting realistic and achievable goals is the first step of a successful business venture. Goals are set when you can answer questions such as how your business is doing or if you’re capable of expanding. Bookkeeping can help you answer both questions.
Bookkeeping can be the difference between whether a business fails or succeeds. There are several accounting software that can be used to manage your own books. See list below.
* QuickBooks Online – http://www.intuit.com/quickbooks-accounting-software/
* Wave Accounting (free and paid version) – https://www.waveapps.com/
* FreshBooks – http://www.freshbooks.com/
* Zoho Books (great for micro-businesses) – https://www.zoho.com/books/
Ideally, hiring a bookkeeper is the wiser choice. Having an expert on the team can help you breeze through finance-related concerns, so you can focus more on growing your business.