Bookkeeping & Your Business

BOOKKEEPING & YOUR BUSINESS

A CRITICAL BUSINESS PRACTICE

Written by Steven Miller, CPA       July 9, 2018

Often treated as a red headed step child, bookkeeping often gathers little attention.  You might be unpleasantly surprised at the consequences of ignoring your financial records.

Bookkeeping is the recording of the value/cost of assets, liabilities, revenue and expenses of your business.  It is the history of your business expressed in numbers.  Bookkeeping tracks what you bought, sold, borrowed and invested and how you have performed.

Too many business owners give bookkeeping little attention.

They check the bank balance and then focus on other issues.  Most lack an understanding of what the financial statements are saying to them.

Accurate financial records are essential for every business.

With today’s technology, a bookkeeping service has the ability to gather most of your records and receipts and process them electronically with little or no input from the owner. This saves money and grants more productive hours to the owner.

FUNDAMENTAL PURPOSES OF BOOKKEEPING

  • Feedback on your business’ performance
  • Income Tax Audits, sales tax audits, etc.
  • Income tax, payroll tax and sales tax reporting
  • Bank lines of credit and other financing applications
  • Selling or merging your business with another
  • Required by lenders or customers

CONSIDER THE VALUE OF A PROFESSIONAL HANDLING THE BOOKS

Many business owners choose to keep their own books employing QuickBooks or other accounting software programs.  The guidance provided by these packages is quite limited. 

This often leads to problems and errors that can be quite costly (lost deductions, improper revenues, sales tax errors and so on).  Were you an “A” student in your two years of accounting classes in college?  What you might save in fees is typically dwarfed by higher taxes and lost opportunities.

Accounting software is rapidly changing as technology and AI are adding enhancements at a rapid pace.  Are you looking for a better solution?  Contact us today to explore our advisory services. We may be able to guide you to a better process.



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