Our books will tell you everything that you can never see on the surface.
3 Ways of Bookkeeping that will help you grow.
1.) Bookkeeping will save your business because it will tell you what and where you spent your money.
Do you know that 82% of all small businesses fail because of cash flow problems? Your cash flow shows you two things. First, how hard you’re working to produce revenue. Secondly, if you aren’t managing your books effectively.
Without bookkeeping you will not know what is coming in (income) and what is going out (expenses). If you’re really trying to take your business to the next level, it only starts with the small step of keeping the books of up-to-date.
2.) Your business bookkeeping matter in helping you leave a legacy.
If you want to sell your business to somebody, it involves taxes.You can easily maintain and manage your taxes if you maintain the books of accounts well.
When selling or transferring a business you will need your bookkeeping to provide financial statements that can illustrate the value of your businesses.Ask yourself this question. What will you do with your business when it’s time for you to retire?
Leaving your business to your spouse or children involves bookkeeping because they will use your financial statements for evaluation of what is your business’s worth. Every year one increases the profit margins by 30% and increase the revenues by 20%.
We need to understand that everything that we do in our business today reflects tomorrow. If you don’t have your books today we won’t know what is your business is worth tomorrow.
3) Bookkeeping helps you corroborate the income and expense that you claimed on your business tax returns.
If you were to get audited on your notice, you will see where there is an item on the list that says General ledger and General journal. The only way to thoroughly corroborate all of your deductions in your taxes is by having bookkeeping. Throw them books at the IRS and call it a day!
Loves, Bookkeeping is extremely important and I can’t honestly stress the importance. One thing I can tell you is that without having bookkeeping you may not be able to scale your business.
If you need help with your books, check out my 10-week bootcamp bit.ly/bookkeepingforprofits.
Do you have questions about your tax? Chat now with Folasade for free at bit.ly/quicktaxchat.
