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Sharing business sense to fuel B2B growth

Small businesses sometimes run as either little firms, or partnership companies, or ownership issues. several little businesses fail as a result of they don’t have a correct tax strategy. 

If you are a Small Business Owner and are not maintaining your books, when the tax time comes you are handing over a handwritten note or excel spreadsheet, or shoebox of Receipts and expenses to your Accountant, just so you can file your taxes.

A. What is Bookkeeping : 

The activity of keeping records of the financial affairs of your Business.

B. Why is bookkeeping important :

  1. Tax Deductions   – so do not miss claiming any expenses.
  2. Business Loan – When you apply for Financial assistance/Relief/Grants.
  3. Financial Mistakes – errors, omission, duplicate payment, fraudulent transaction, staff stealing money
  4. Financial Picture – one of the major reasons for Small Business failure
  5. Business and personal – happens a lot with start-up – have the credit card handy, before the business bank account is set-up.
    • Helps understand your Financial position – Profitable or not 
    • Are you pricing your Product/Service correctly?   
    • Foundation for Preparing Budgets, cashflow.

C. How you can maintain the books :

Software (highly recommended) – never do it in excel – the money you are trying to save is not worth your time.

  • Software helps avoid calculation errors.
  • Creates your financial statement easily vs in Excel you can only see your income & Expenses
  • Get help from a professional to set up Accounting software first, then you can maintain going forward.

D. When – Frequency of Review/analysis of your numbers

Based on Revenue:

  • 1 Million in Annual Revenue – Monthly
  • $500K – $1M – Quarterly
  • $250K to $500K – mid-year, Oct, then year-end
  • Under $250K in Revenue – October, December

E. Get Assistance

Hire professional – Any Business Owner doing more than $500K in Annual Revenue, should not maintain their own books.

SUM UP :

Bookkeeping is a benefit for Easier to plan , gives instant reporting, Better tax prediction. It helps to faster business response in minimal times and faster financial analysis

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