Bookkeeping is a requirement for any business. Running a successful business requires accurate bookkeeping. Many times, small business owners overlook the importance of accurate bookkeeping, don't do it at all, or sign up for QuickBooks and think they can do it themselves - only to end up frustrated, confused, and spending hours on something they'd rather not be doing.
In this blog post, we will discuss the importance of accurate bookkeeping, how it can affect a business's bottom line, and the importance of having a bookkeeper on your team.
Imagine planning a family vacation and not knowing anything about your income or household expenses. Surprise - if your business's financial records are inaccurate, or you aren't doing bookkeeping at all; you are engaging in nearly the same process as planning a vacation without knowing a thing about your finances - and it rarely ends well when making crucial financial decisions about the future, and growth of, your business.
Accurate financial records aid in making strategic decisions about where and how best to allocate resources to grow the business. Let's say, for example, your business spends a large amount of money on marketing but does not see a corresponding increase in revenue. Would you keep spending money on something that isn't working? No! It is best to reallocate some resources to a different area of the business or marketing that would provide a better return on investment.
Do you have a budget for your business? You should! If you have accurate financial records, you can then create realistic budgets and make accurate predictions about future income and expenses. This process will also help you determine if you may need to borrow some money to meet the day-to-day operational needs. No one wants a surprise when it comes to that.
Additionally, the government requires businesses to keep accurate records of their income and expenses for tax purposes - accurate financial records are vitally important here to ensure a business is paying the correct amount of tax and avoiding any costly penalties or fines for incorrect tax returns.
The best way to obtain a clear picture of a business's financial health and cash flow is to bring a bookkeeper onto the team to help maintain accurate financial records and allow you to spend time doing what you do best.
Did you know, the average small business owner spends 60 hours a year doing their books? What could you do if you had that week and a half of time back to grow your business?
Laser Bookkeeping is a virtual bookkeeping service headquartered in Lebanon, IN, and serving clients nationwide using the QuickBooks Online platform. We look forward to the opportunity to help you with your bookkeeping needs! Book your free consultation today!
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