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What We Know
We know that it is important to keep accurate books and records for annual tax reporting obligations. None of us want to overpay on taxes. And none of us want to go through an audit, especially with messy books.
We know that accurate books also help ensure we have a clear picture of our business's financial health for planning and decision-making. After all, one of the main reasons a business fails is poor financial management.
But Why Else Do We Need Accurate Bookkeeping?
Here Are My Top 5 "Not So Obvious" Reasons:
ONE
Perhaps a business wants to finance a new building or a large piece of equipment. Business lenders and investors will want to see up-to-date financials. And if approved for funding, they will most likely want to see these reports ongoing.
TWO
Similar to the above, we have learned during crises (COVID) and disasters; special loan programs, grants etc. are generally limited and first come, first serve. If your financials are not up to date, you can miss out on funding opportunities during turbulent times.
Sand Dollar Bookkeeping Client, Heather Stone, Owner, Stone Insurance Specialists, Inc.
Post hurricane Ian, applying for disaster assistance.
THREE
Most businesses who have employees have worker's compensation insurance. Generally, the carrier does its own financial and record keeping audit on the insured annually. Erroneous and messy recordkeeping can result in this being stressful for the business owner, as well as potentially higher premiums and changes in coverage. Also, if a business incurs a worker's compensation incident due to an injury or accident, the claims department will generally need detailed payroll records and other reports and documents.
FOUR
Business owners considering exit strategy; accurate financials are a must to ensure the company gets the attention of the right potential buyers and sells for top dollar.
FIVE
Last but not least, peace of mind. Mess, clutter, and disorganization causes anxiety, right? Well, for business owners' messy books are those things. Accurate recordkeeping not only gives you sound financials, but a sound peace of mind free from worry about all the things discussed.
Conclusion
There are many reasons why bookkeeping and good record keeping is so important for a business. At Sand Dollar Bookkeeping, we pride ourselves in helping instill best practices into our clients’ bookkeeping and their business’s procedures and systems. No business is one size fits all, and that’s why our services aren’t either. We tailor our services to meet each business’s needs. Interested in learning more about how our firm could help your business? Schedule a free discovery phone call in the intake link below:
Also, check out our FREEBIE LIBRARY with tips and resources.