If You’re Not Doing Bookkeeping, You’re Missing Out!
Taxes are one of those things that are as certain as death. There’s no escaping it! I’m quite sure that there are many of you that hate paying taxes; it’s okay, you can say so! What you may not know is that bookkeeping is your number ONE mechanism to combat you paying taxes! It will allow you to see the true picture of your business; the expenses and income that you incur. The biggest mistake that many businesses may is that they lack bookkeeping. This means that they end up overpaying on taxes. The opposite end is that they underpay, and end up in serious trouble! Additional taxes aren’t the only thing that comes from a lack of bookkeeping; we’ll look at some more!
1. You miss out on certifications!
The Small Business Association (SBA) issues an SBE (Small Business Enterprise) certification. The only way that you can even get on the path to receive this is to provide your financial statements! The only way that can be done is through, you guessed it; proper bookkeeping! SBE certifications are of importance because it allows you as a small business owner to directly work on contracts for the government! Government contracts usually range in the millions of dollars; you don’t want to miss out!
2. You miss out knowing your own numbers!
Operating a business isn’t an easy task. Not everyone can do so, and that in itself is okay. However, for those that do operate a business, why would you not want to know your own numbers? You can see the patterns, inconsistencies, and everything that lies below the surface of operating a business.
You get to really see which products sell well, your operating expenses, and everything in between! I’m not saying that you have to know every number under the sun (that’s what a licensed tax professional or bookkeeper is for), but you have to know a little on your own so that you may better help those trying to help you!
3. You miss out on investments!
If you’re trying to really build your business, the easiest way is to get an investment from somebody. However, investments require that the interested party have access to your financial story, your business story, and its current standing. How does one gain access to that? Through proper bookkeeping! It’s something that can’t be avoided! Before any investor will make a decision, they want to see current financial standings, as well as future projections! You can’t just give them a hope and a prayer; they need solid evidence that their investment will pay off!
Whether you like it or not, bookkeeping is one of those things that are a requirement for you to stay afloat as a business. You can’t afford to go around NOT knowing what your numbers look like, and having the IRS beat down your door because of your lack!