Bookkeeping is essential to any business either small sized
or big business. When this vital process is neglected, it will have a direct
adverse effect on the business. Bookkeeping is the organization and storage of
accounting and financial documents. It includes the creation and management of financial statements, ledgers,
income tax returns and business journals. The following explains the importance of
bookkeeping:
Enhances financial analysis and management
The management of cash flow in a business is among the most
important things to focus on. Failure to ensure that invoices are paid on time;
payments from customers are followed up and recorded and ensuring that your
suppliers are paid, will eventually crumble your business. Bookkeeping enables
you to keep track of all your operations and reminds you of what needs to be
done and identify growth opportunities and over-expenditures.
Enables you to meet your tax obligations
Bookkeeping guides you on how to keep track of all your
business information and documents. By keeping all your records in order, you
will be able to know how much you are supposed to pay as tax and your revenue.
When the time to file your tax returns arrives, you will have potentially no shortfalls because
everything is planned for and the money is already set aside.
Makes it easier to report to investors
You will no longer have to worry about the information you
will give to your investors and board members. Every little detail will be
recorded and filled accordingly. Any financial document will be readily available if requested by the board or upper management.
Business planning is easy
Bookkeeping can enable you to see whether you are making
profits or losses. By the use of an updated profit and loss accounts or the
balance sheet of your business, you will be able to understand the financial
position of your business at any time. It can also help you plan your business
appropriately in many ways. In case you are making losses, you will identify the areas that
are not making profits and improve those areas or make the necessary changes.
Reduces the stress of an audit
In case an audit is done on your company or business, you
will rest easy knowing that everything is in order. Additionally, having your
accounts updated will make the entire audit process more easy, less costly and fast. You will be
able to go back to doing business instead of spending countless hours trying to
explain your books.
In summary, professional bookkeeping is important to any business or organization. To ensure that all your records are kept in a proper manner, it is important to hire a professional bookkeeper.
In summary, professional bookkeeping is important to any business or organization. To ensure that all your records are kept in a proper manner, it is important to hire a professional bookkeeper.
Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705
145 E. University Blvd., Suite 1A
Tucson, AZ 85705
(800) 272-4005
