Running a business is hard work! Keeping track of finances is sometimes even harder. As a business owner, you’re familiar with the term bookkeeping, but you may wonder at times what’s the big deal. Here are some of the top reasons why bookkeeping is so important:
Budgeting
Accurately keeping track of all your income and expenses will help you know how much cash you have available to run your day to day operations.
Getting ready for Taxes
Your accountant will have a much easier time preparing your taxes without having to file an extension. All income and expenses will be categorized, and you won’t be scrambling for paperwork and receipts at the last minute.
Business analysis
Do you have more than one revenue stream or location? With an accounting software like Quickbooks, you can run custom reports to track profitability and make better business decisions on where to invest more to grow your business.
Applying for loans
Ever needed to apply for a loan or line of credit and the banker asks for financial reports? With organized financial books, you will be able to provide the lender with current and accurate reports making the lending process faster and smoother.
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