Bookkeeping is one of the most fundamental responsibilities of your business. As a small business owner, you could do your own bookkeeping, but you should consider investing in a bookkeeping service that will save you not only your valuable time but also the danger of making a very expensive financial mistake.
One of the challenges of owning your own business is having to function in multiple roles, from sales to operations to administration – you are probably trying to do it all. When you started your business you had a passion for something and more than likely you did not say, “I can’t wait to start my own business and do paperwork and maintain financial records all day!”
Who would say that? Well, we do, but that’s because paperwork is our passion! But the truth is that every business owner needs financial records, not only to meet the guidelines from Uncle Sam, but also to provide data and insight into how the business is performing and how to make it better.
We provide solutions for all of these situations and more. We customize a weekly, monthly or quarterly package or provide “a la carte” services. We work with you as a business partner and provide support services so you can live your life and get back to what you do best.
You need to know your results to monitor the progress of your business. Financial reports and data can show whether your business is improving, which items are selling, or what changes you need to make. Accurate and timely financial reports can increase the likelihood of business success.
Banks and suppliers will not give you credit based on your word that you will pay timely. They require proof. Proof in the form of a Balance Sheet showing what you own and what you owe and a Profit and Loss statement showing how much you are making each month and year.
You need financial statements to prepare your tax returns. The financial statements provide the required information to complete your business and personal tax returns.
The information reported on the tax return must be backed up by source documents (receipts, invoices, canceled checks). You must keep your business records available at all times for inspection by the IRS. If the IRS examines any of your tax returns, you may be asked to explain the items reported.
Click here for the IRS publication 583 – Starting A Business & Keeping Records.
Do you avoid budgeting for you business because you dread it so much? Download our FREE basic budgeting overview and Excel spreadsheet template and turn dread into done.
We look at your entire business as a whole, not just the financial statements, in order to provide you with the best possible plan for success.