Keeping track of your finances is crucial to growth & survival of your business. Here are the 7 Reasons why bookkeeping & accounting is important for your business:
1. Helps you plan ahead for your business
a. prepare and use a budget
b. plan for purchases (equipment, buildings)
c. be ready for unexpected expenses
2. Helps you meet deadlines
a. timely payments of loans, rents, taxes & other bills
3. Helps you monitor and manage your cash flow
a. Save money during the busy time for the slow time
4. Helps you evaluate the performance of your business
a. Is your business growing, depreciating or staying the same?
b. What is the percentage of growth or depreciation?
5. Helps you set projections and goals for your business
a. How am I doing, have I met my goals, can I project more growth?
6. Helps you to know when it is time to hire employees, move into a larger office or when is it time to scale back
7. Helps you have accurate records for preparation and filing of taxes