Why Reliable Bookkeeping Is Important

16 Jan Why Reliable Bookkeeping Is Important

If you own a business then you will certainly understand how important it is to make sure that you have your documents organised wherever possible. If your bookkeeping is neglected, you may end up missing out on key information that could impact the profitability of your business. Here are some reasons why having reliable bookkeeping is important:

Financial Analysis

If you are not sending out invoices correctly, documenting these invoices and not following up on your customer payments then you won’t be running your business as efficiently as you could. Without being able to review your financial records in a timely manner, you could be missing out on opportunities to improve the bottom line.

Tax Obligations

Accurate and completely bookkeeping helps you to keep track of any information and documents that might be required come tax time. In Canada, corporations can face significant interest and penalties for now filing on time and correctly. Maintaining your books throughout the year will mitigate the risk of interest and penalties, as well as make it less painful come tax time. Current financial information will also inform you of any tax payments or refunds that may be due to you at year end, thereby helping you manage your cash flow better.

Tracking of Payments and Receivables

Another reason why you need a bookkeeper is because they can help you to track payables to suppliers and receivables from customers. Without accurate tracking of these accounts, businesses may be missing out on outstanding balances from customers or incurring late fees for unpaid invoices to suppliers. Issues in these areas can significantly impact the cash flow of a small business.

It’s never too late to get a reliable bookkeeper for your business. Consider using an online bookkeeping service such as EveryEntry and spend less time worrying about your books and more time focused on what’s important, running your business.