A little basic book keeping can go a long way in keeping your business organized and profitable. You need to know how to efficiently collect your money, save it and spend or invest it wisely.
If you want to succeed in business, you need to know about book keeping and financial management. Financial management is not something that you can leave to your banker, financial planner or accountant. You need to understand the basic principles and use them on a daily basis.
Accurate financial records will help you answer some very important questions, such as:
- Are you making money, or losing it?
- How much are you making or losing?
- Is your business on sound financial ground?
- Is financial trouble lurking ahead?
Poor financial management is one of the leading reasons that businesses fail. In many cases, the owners could have avoided failure by applying sound financial principles to all their dealings and decisions.
How can I manage Book Keeping for my Small Business, when I already have so much to do?
Like many small business owners, you may find that it’s too expensive to pay an accountant to do routine bookkeeping. Someone in your organization—probably you—must take on the responsibility of keeping an accurate set of financial records.
Fortunately bookkeeping software makes this task easier than you might have thought. In most cases, with a little study and familiarization with your bookkeeping software, you should be able to manage your most basic financial records without the help of an accountant.
The importance of Good Records for your taxes
Whether your business is a sole proprietorship, partnership, or corporation, you must file an income tax return and pay income taxes. With good records, preparing an accurate tax return will be easier and you’re more likely to be able to do it on time.
Poor records may result in your underpaying or overpaying your taxes and/or filing late (and paying penalties). If your accountant prepares your income tax return, poor records will almost certainly result in your paying higher accounting fees.
If your business is a partnership, not only will you have to prepare a partnership tax return, but partnership return amounts will pass directly to the tax return of each partner. So your record keeping will directly affect the tax return of each partner.
Please feel free to contact us if you need any help with your taxes. We are happy to be of service to you.