Why is Bookkeeping Important

The accuracy of your financials is dependent on the thoroughness of your bookkeeping. Since lenders, investors and tax collection agencies depend on accurate books. Here are a few reasons why a business might struggle with bookkeeping.

  1. You are not an accountant – If you business has nothing to do with accounting, you might not know the ends and outs of bookkeeping. Simply having a spreadsheet or a check register might not be enough. Good bookkeeping is more complicated than many realize.
  2. Relying on software to do the bookkeeping for you – Yes it is true there are software products suck as QuickBooks (Which we use and recommend). However, to use them correctly, you still need a basic understanding of accounting. Software might make it easier to enter data, but you need to know where to enter information and how to configure the software for you business.
  3. Getting bad advice – There is no shortage of opinions. However, it is not uncommon to encounter a business who is has received advice from someone who was incorrect. This can range from what is deductible to the business to how to keep books. The sooner errors are discovered, the easier to get the bookwork back on track.
  4. You don’t know what you don’t know – Unless you are an expert in accounting or taxes, no one expects you to know everything about that might impact your business. If you don’t know something, how do you know you don’t know? The point is, it is easy to be blindsided by tax rules especially that you had no idea applied to your circumstance. Our job is to identify the what will or could impact your business based on your choices.

The bottom line, sure, you can do your own bookkeeping, but if it is being done as an afterthought rather that an important aspect of your business. We should have a conversation. Baldwin and Company might just be the remedy to ease your stress and frustration of bookkeeping.

Want to know more?