Why Bookkeeping Should be Your #1 Business Priority
Updated: Jun 9
Bookkeeping enables you to see exactly where your business is spending money and where your revenue is coming from. It also helps you get organized and ready for tax season when deadlines are crucial. So why does bookkeeping matter in the first place?
When filing taxes...you need to know your net profit and sums on expenses. The only way to have accurate numbers is to have up-to-date bookkeeping records.
Are you aware of how much you’re spending...on software, advertising, rent, and other expenses? Are you able to tell how much your revenue has increased year over year? These are essential questions that business owners should be asking themselves. Understanding how money flows in and out of the business is fundamental.
Sometimes emergencies happen...and you need to borrow money for a large expense. Lenders and creditors want to make sure they are providing liquidity to a business that will be able to pay them back. They would not be able to provide that emergency liquidity unless an accurate set of financial statements are readily available. When the unforeseen strikes, it is sudden and stressful. Trying to create a set of financial records during this moment is almost unthinkable. Avoid the stress and be prepared at any moment.
Once an accurate set of books are on-hand, a CEO is able to monitor the health of the business concern and make proactive decisions on how to best allocate financial resources. They would be able to decide how much in taxes are going to be paid rather than guess about what will happen at the end of the business cycle.
Content, links, and some material within this website may have been created by Mofrad Financial Solutions for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management or its subsidiaries. Avantax Wealth Management is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.