Growing your business through financial strength
January 3, 2022 by Lauren Avery
Bookkeeping shmookkeeping, am I right? No. We need to change that way of thinking.
We are VEGA, LLC and we are here to handle the books because you don't want to. In this post, we are going to discuss the benefits of bookkeeping for your small business and why it is crucial to keep records well.
Audit
If you are selected by the IRS for an audit, there is no way to get out of it. An audit will consume time that you already don't have. Where are the receipts for the last year? Invoices for the last year? The last 2 years? Not only will your time be consumed, but penalties will be incurred by the IRS if your books are a wreck. Did you know that actual jail time could be a part of these penalties?
Preparing for Investors
When you have the proper bookkeeping systems in place, you are better able to generate the financial reports that investors will want to see. You may know by now in your journey, but investors will want to know exactly what they are investing in. Being prepared to go into these meetings means keeping your books in pristine order.
Maximizing Tax Deductions (i.e Receipt Management)
Why pay more than you have to to the IRS? Businesses leave tens of thousands of dollars on the table every year when tax time. One of the reasons that this happens is because of poor receipt management. How hard could it be to turn every receipt into a digital copy that SYNCS with your transactions?
Cash Flow Awareness
What's cash flow? The liquidity of your business's money. When cash is tight, you need to know what is ACTUALLY in the account to spend. How do you keep the account from going upside down without proper bookkeeping? You don't.
Compliance
Do you know if your business is required to file taxes quarterly, monthly or annually? Do you know that you could yet again be leaving money on the table if you aren't planning for the taxes that you owe as you go?
Better Financial Analysis
When you take growth seriously, you need numbers to look at to make your plan. With proper bookkeeping, you are able to make better decisions with more knowledge about your business as a whole.
Now you know better than "bookkeeping shmookkeeping". If this is overwhelming or you still don't want to take the time to do the books as they should be done, call us. We would love to talk with you for 1 hour for FREE to discuss your business needs.
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