If you own any type of business, big or small, chances are you’ve already come to realize that organization is likely the most important element to success.
Especially in the start-up phase of a business’s journey, you have probably encountered periods of disorganization, and this is totally normal. It can take a while to figure out a process that is efficient and cost-effective, without sacrificing the quality of the service or product you offer.
Disorganization is sometimes unavoidable in those early phases of starting a business, but there is one factor that you mustn’t let slip – accurate bookkeeping.
From the earliest days of your business, it is of utmost importance to maintain precise, detailed books. And if you’ve ever experience incorrect or unorganized books, you are likely aware of the stress and time associated with correcting the errors and sorting out all the paperwork.
If you can’t seem to get your books in order, read this article to find out just why you need to be taken extra measures to ensure that your books are in tip-top shape.
Relieve Your Stress
Some business owners like to continue in a state of naivety when it comes to their finances. Sometimes it seems better to just assume that your numbers are adding up and creating a profit. But not knowing the exact state of your financial situation is a source of great stress, whether you admit it or not. By keeping your books organized and up-to-date you can know exactly where your business finances stand, minimizing stress and maximizing profit. Which brings me to our next point.
Save Your Money
By investing in your bookkeeping, you save a ton of money for your business. Between the time that you save yourself from reviewing and sorting through the numbers and paperwork and the profit that can be shown on your financial statements when they are properly recorded, it won’t take long for you to realize the benefits.
Save Your Time
Avoid the last-minute scramble of finding and organizing your paperwork when tax season rolls around by ensuring your books are updated throughout the year. By recording your transactions as you go, you’ll save yourself a noticeable amount of time at the end of your fiscal year.
Maximize Your Tax Returns
Don’t be the type of business that dreads tax season! Be prepared every year by always knowing exactly where your business finances stand. This way, you can strut into the accountants office with an air of confidence that your competition is likely to lack.
Grow Your Business
It’s basic logic to know that your business will have a hard time growing and expanding if organization – especially within the financial area – is lacking. If you have plans for growth, the first thing you need to do is put an efficient and accurate bookkeeping process in place.
Now that you know the importance of bookkeeping, you may be tempted to go out and hire a bookkeeper. Which is great – most business owners simply do not have the time to manage their books by themselves. But we recommend going with a bookkeeper with a proven track of accuracy and efficiency. Beware of bookkeepers who charge too much and offer too little – bookkeeping is an unregulated industry and nearly anyone can claim that they are a good bookkeeper, even with little to no understanding of the whole process.
Looking for one of the best bookkeepers in Calgary? Give SBTA a call. We hire retired accountants to mend your books, meaning that you only ever have an expert eye recording your business’s finance.