Top Four Reasons Why Bookkeeping Is Important To Small Businesses

Hello Profitable CEOs!

What is bookkeeping?

By definition, bookkeeping is the process of recording your or a company’s financial transactions and the first basic step of the accounting process.

The importance of bookkeeping cannot be emphasized enough, but here are top reasons why this is vital to the health and life of your business.

  1. Better cash flow management

Cash flow management is one of the most important things to focus on as a small business owner. When a customer does not pay on time, and you do not have the money you need to operate your business, the business can be very stressful. Bookkeeping can systematize your cash flow process and ensure that you maintain a positive cash flow at all times.

  1. Fulfillment of Tax Obligations

Bookkeeping helps you keep track of important information and documents in order to fill quarterly, monthly or annual taxes. You don’t have to rush anymore to find all those expenditures or try to remember why you made a particular purchase in order to receive a tax deduction.  Tax returns are also made easier with an organized financial reports. Your tax advisor can then devote time to providing you with sound tax advice instead of correcting entries on the financial statements.

  1. Business Planning is Easy

The key information you need to grow your business can be found on your financial reports. By maintaining accurate, reliable records you are then in the best position to prepare your financial reports on a monthly basis. Once you have this key information you can begin to understand your business trends. Once you have a clear understanding of the true health of your business you can then prepare for a profitable, cash rich future.

  1. Proper Record Keeping is required by Law

The IRS requires that all registered businesses have a record keeping system that can be audited. When you have accurate, reliable, records you remain in compliance with the IRS.

If you need assistance with maintaining the records for your business complete a Discovery Session today. Someone from our team will give you a call and provide more information regarding our Year End Bookkeeping Special.

Octavia Conner

CEO of Say Yes To Profits, a virtual CFO and bookkeeping firm that focuses on educating dentists, consultants and services-based businesses on how to use their numbers to increase cash flow, boost profit margins and grow their business faster.

Founder of the Say Yes To Profits Academy and author of the bestselling book, Say Yes To Profits NOW, Octavia”The Profit Maximizer” Conner is known as America’s Leader in Profit Maximizing For Small Businesses. She is equipped with over 14 years of finances, accounting, and business development experience.

Octavia Conner is a high achieving accountant and financial management consultant who specializes in closing financial gaps and locating hidden money leaks in order to significantly increase profit margins.

She has a keen eye for improving the financial health of a company and as a typical result, clients double (even triple) their bottom line within the first 60 to 90 days of her guidance.

Download her free cd today to learn how your business can start to Say Yes To Profits!

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