Previously, we discussed three points on why bookkeeping is important for your small business and today we continue with part two. Find the link to the previous post below.
Are you still contemplating on the practice of bookkeeping, let me help you clear your doubts on what bookkeeping can do for your business.
AVOID THEFT! This topic is a sensitive one and requires much attention! Businesses collapse from theft everyday! Theft is usually the first , business owners tend to blame for loss of profit, loss of products and services, stagnant business or retrogressive business. With the implementation of bookkeeping, all transactions are made available for your review and prevents theft or helps to detect theft.
PREVENT TAXATION AUDIT BROUHAHA! Taxation audit is a thorough analysis and examination by tax auditors to confirm if income obtained tallies with tax deductions made. Businesses owners, ignorant of bookkeeping are usually in a dilemma during taxation auditing due to unavailability of records of transactions. Irregularities realized in taxation audits can cause one to be fined for huge sums of money which will cause your business so much.
ATTRACTS INVESTORS! Investors are likely to be interested in a business which has an organised financial system. Detailed records of your transactions will be requested by a potential investor to determine the health of your business whether it is a progressive business or a stagnant one. Bookkeeping will he;p you to provide all the information to enable them to invest in your business.
Bookkeeping is here to manage the finances, protect the business and promote it. A great tool every business must adopt to thrive in the business industry. In this advancing technological world where everything is smart and fast, a bookkeeping software is what I recommend.