Whether you’re starting a business or running a small business, you have an immense amount of responsibilities on your shoulders. Being a business owner is gratifying work. You make your own schedule, travel when you decide, run your business how you see fit, and report to yourself. Unfortunately, you also handle your business’s finances, retirement planning, healthcare planning, tax planning, and many more major decisions.
With so many responsibilities on your shoulders, it’s easy to put your financial records on the back burner. Receipts you meant to save end up in the trash, purchases go unaccounted for, expenses left unrecorded, so on and so forth. If you’ve just started a business, your finances might be pretty simple for the first year. But that is no reason to neglect them. Why is bookkeeping important for small businesses? Why is bookkeeping important even if you’re not working with a large amount of money? Find out now.
Bookkeeping is Essential for Filing Taxes
Taxes feel intimidating for an individual, let alone a business. If tax time comes around and you’re rummaging through folders, filing cabinets, and drawers to find the appropriate documents, then you’re missing out on the benefits of good bookkeeping. With accurate financial records, reporting your income and expenses is easy. Making the most of tax deductions is simple. If the IRS would decide to audit you, you’ll have all of your records ready for their review. With quality bookkeeping, you can take the fear out of tax season.
Bookkeeping is Necessary for Creating a Budget
Bookkeeping is also crucial for budgeting. You can’t plan out your next financial year in detail if you don’t really understand what happened the last year. Understanding where your money went, when sales peaked, and much more is essential to creating an effective budget. Overspending goes unnoticed all too often with small businesses. Good bookkeeping will track your expenses and help you understand how you can reduce them next year.
Bookkeeping is Crucial to Getting Investors
If you're looking for investment for your small business, good bookkeeping is essential. Investors will want to see a well-organized bookkeeping system that tracks expenses and profits. Your business is not going to grow without additional funding. Whether that comes in the form of a small business loan, a grant, or investors, someone is going to want strong financial records indicating your business will succeed.
Best Bookkeeping Services Near You
Hiring a professional to take on your bookkeeping negates the need for specialized accounting employees. We pride ourselves on giving every business the most reasonable and affordable price we can offer. Every business is different and has a different set of needs. Ready for your custom quote for bookkeeping services? Contact us today.
See what our clients say:
"I've been working with Chris for the past 10 years and this review is long overdue. His attention to detail and comprehensive approach to my financial needs is unparalleled. I truly feel like I get undivided attention even though I am a very small fish in a big pond. Chris's support team is highly professional, responsive, and knowledgeable. Ultimately, Chris is a trusted CPA that I have and will continue to refer business to. Whether you're in need of Account Services (Book Keeping, Financial Statements, Payroll), Tax Preparation (Individual, Business, Planning), or full service Financial Planning - Chris's team will exceed your expectations."
- Jonathan T.