Reason 1: To understand the health of your business
With an accurate Profit and Loss report and a Balance Sheet you can determine the rhythm of your business each year. You can assess your busy and slow seasons and plan for future investments for the growth of your business. Small business accounting and bookkeeping services enable you to quickly answer critical questions about the financial state of your business.
Reason 2: To prepare for your annual tax return
Accounting services help you to accurately track your income and expenses during the tax year so that you can file your taxes on time, and maximize your tax savings with applicable credits and deductions.
Reason 3: To determine your best products and services
Good financial reports can help to reduce marketing expenses by revealing your best customer type and the key product and service sales that produce the highest profit margin for your targeted marketing needs.
Reason 4: To determine why you may be operating at a loss
Correctly recording your business expenses helps you analyze and track your business expenses by type, allowing you to assess how to reduce the cost of doing business and stop losing money.
Reason 5: To help manage your money and increase profits
Good bookkeeping is done routinely, and accurately, with careful consideration and a skillful understanding of the financial needs of your business. It tells the accounting story of your business over time.
Reason 6: To save time by managing your accounting transactions
Most small business owners do not have the time to do data entry, to manage their daily accounting transactions or reconcile their bank and credit card accounts.
Reason 7: To correctly record customer sales and payments
Correctly recording sales receipts, customer deposits, and payments will ensure that your sales and income taxes will not be overpaid or underpaid and reduces the overall audit risk for your business.
Reason 8: To ensure your deposits match your bank statement
Your customer payments are posted to undeposited funds by day, then matched to your daily bank deposits, which speeds up the process of reconciling your accounts on a monthly recurring basis.
Reason 9: To determine the value of your assets and balance of your liabilities
Business assets and outstanding liabilities for your business are routinely and accurately recorded on your Balance Sheet, which helps you realize your owner equity and cash flow position at any time.
Reason 10: To help focus your time and energy on the success of your business
Good accounting reports help you accurately determine the cost of the goods or services that you sell and can reveal whether your current pricing model makes long-term sense for your business.