Why is Bookkeeping So Important for Small Business Owners



If you’re like most small business owners, you have many essential financial records regarding sales and other transactions. Keeping these records organized is the process of professional bookkeeping, which impacts financial planning, taxes, and even bill pay. Below are a few reasons why businesses must take these financial processes seriously.

4 Ways Bookkeeping Can Help Your Small Business

1. Keeps You on Budget

Much like personal finances, a budget keeps your business solvent. While creating a budget is crucial, sticking to one is easier said than done. Strong financial records help you determine whether your business is on budget. It also helps you identify areas where your business should draw back spending.

2. Helps You Prepare for Tax Season

Deductions greatly lower your tax burden. You can deduct the purchase of equipment, employee bonuses, and even charitable contributions made in the name of your business. If there are questions about deductions you made, organized financial records will provide easy and succinct answers, and potentially spare you an audit.

3. Improves Financial Analysis

bookkeepingIs now a smart time to expand your growing business? Are funds being used in the best way possible? The only way to actually answer these questions is by a detailed financial analysis. The better your books, the easier this analysis will be.

4. Provides Insight

Maybe you just introduced a new product or service to your customers. It can be tough to get a read on whether the newest introduction is a success, but financial records offer irrefutable proof of business success or failure. For example, analyze sales figures after a launch point to see how well, or how poorly, your customers responded.

Professional bookkeeping help offers even more benefits to small business owners in Saint Charles, MO. Beacon Virtual Assistants conveniently provides support to local businesses due to their unique business model. Office support is available remotely, which means you can enjoy quality service without worrying about space constraints in your workplace. You can also choose as much or as little assistance as you need, which helps keep your budget in check. Learn more about their administrative services online. If you’d like to schedule a consultation, call (314) 650-9784.

Comments

Post a Comment

Popular posts from this blog

How Time Blocking Can Make You More Productive

Image
Have you ever heard of Time Blocking? If not, this is one item that you MUST look into as it will make you far more productive! Basically, time blocking, as well as task batching and day theming, give you an effective way to control your workflow and workday.  It is a very effective way to become proactive about the work that you must do, rather than reacting to the work as it comes in. You will be dividing your days into blocks of time and each block is specific to a task or group of tasks that correlate to one another and only those tasks are worked during that time. This is actually a combination of both Time Blocking and Task Batching, which is the easiest for most people to incorporate.  For example, most people lump items like all social media (Facebook, Instagram, Twitter, LinkedIn, Slack, etc) into one block, Strategic Planning could be a second block, Client Proposals could be a 3 rd  block, Email a 4 th  block and so on. In the image above,...
Read more
This year it is more important than ever to spend time with your loved ones and give thanks for the time that we have together. Through the struggles that this year has brought, it is important to remember the time of gratitude and new beginnings is now. Happy Thanksgiving!  
Read more

The Customer Is Always Right.....Until They are Not!

Image
  The phrase “Yes, and…..” is the most popular term in customer service. But does this statement really help our business? We’ve all heard the statement, “The Customer is Always Right” and I think this is a very misleading and potentially damaging statement. I think, instead, we should be saying “The Customer is Always Right…..Until They Are Not.” We don’t like saying no to a customer because we are afraid of offending them and possibly losing their business. Saying no can cause disagreements that, sometimes cannot   be avoided or rectified. There are, however, real, valid reasons that you should be saying no to a customer. 1.  When it goes against Company Policy Does the employer or company allow such requests? Is there any mention of such requests in the policy manual? Would this be a request that would be honored fo r other customers? If not, it is time to tell the customer no. Policies are in place for a reason, weather we understand those reasons or not. Policies mus...
Read more