What goes into your accounting system is a direct reflection of the reports you get out of it. If you’re not keeping up with your bookkeeping and updating it regularly, you will have garbage reports from which to make decisions. Using these garbage reports can bring you LOTS OF HEADACHES.
For instance, messy books serve as an INVITATION FOR AUDIT. Garbage reports cause incorrect tax filing, income discrepancies, blurry business expenses, among others. Sloppy bookkeeping can bring IRS knocking on your door. Not only that, your tax deductions can be DENIED without proper supporting documents – which is yes, obviously, your books!
These are only some of the reasons WHY bookkeeping is IMPORTANT. Financial experts, in fact, recommend it DAILY. Regular bookkeeping helps you see your cash flow more clearly and the overall financial status of your business.
ACCURATE BOOKKEEPING = ACCURATE PROFIT GROWTH DECISIONS
You stay on-top of your invoices, you know where and when your money should go, and when money should come and return to you (CASH FLOW). In an unfortunate case that you are audited, regular bookkeeping can make AUDITS MUCH LESS PAINFUL. The more time they have to dig around your messy records, the higher the chances you earn SANCTIONS AND PENALTIES. But, if you have your records neat and organized, the faster IRS can say goodbye (for now, at least).
You can also file your taxes in a timely manner, saving yourself from late filing fees and interest. You have your records ready and organized to support tax deductions, saving you and your business A LOT OF MONEY!
If you already BEHIND ON YOUR BOOKKEEPING? Or are you finding it HARDER AND HARDER to keep up with it while running your business? If that’s the case, WE CAN HELP.
IPS Accounting Services & Consulting