The ABBA Initiative hosted a thought-provoking webinar titled “Business Essentials” where Miss Beverly Chang, a seasoned financial professional, shared her insights on an important topic that every entrepreneur must know about. Whether you're a seasoned business owner or just starting, her ideas are sure to inspire you. So, let's dive in and explore the secrets of achieving business success!
The Importance of Bookkeeping: Keeping Your Business on Track
Are you a business owner who has been overlooking bookkeeping? Do you find yourself overwhelmed by the thought of it or leave it all to your bookkeeper, only to find out later that there are no records or that the books are empty? If so, it's time to start taking bookkeeping seriously. In this blog post, we will uncover why bookkeeping is important and why you, as a taxpayer, are solely responsible for your records.
What is Bookkeeping?
Before we dive into the importance of bookkeeping, let's define what it is. Bookkeeping is the process of recording all financial transactions made by a business into organized accounts on a regular basis. This means that every transaction, whether paid or not, should be recorded. The job of bookkeepers is to record, classify, and organize every financial transaction made through the course of business operations.
Why is Bookkeeping Important?
Now that we have defined bookkeeping, let's take a closer look at why it is crucial for your business.
- It Helps Your Business Stay Organized
For any kind of business to be successful, proper organization is necessary. Without bookkeeping, finding information relevant to your business when you need it may be difficult. By keeping your books up to date, you can maintain organized records that make it much easier to find the information you need when you need it.
- It Helps with Budgeting and Tracking Your Business' Profit and Growth
Bookkeeping is vital to any business because it makes it so much easier to budget. With a budget in place, you can plan for future expenses for your business to help with growth. If you don't keep accurate and up-to-date books, it's a lot harder to get an accurate budget because it's mainly guesswork. With bookkeeping in place, you will be able to determine whether or not your company is profitable. Without this knowledge, it is impossible to determine how well (or how poorly) you are doing, making it hard to evaluate your performance.
- It Makes Tax Preparation and Tax Audit Comfortable and Efficient
Bookkeeping is necessary for tax preparation. Your business has to file a tax return every year, and every year it's a hassle. With proper bookkeeping in place, preparing taxes may be done in a more streamlined and stress-free manner. When you have a proper bookkeeping system, everything related to your finances is arranged and maintained, so you won't have to waste time searching for receipts or invoices. With this, you can easily calculate the exact amount of taxes to be paid without missing any deadlines. As you know, failure to keep taxes updated on time may lead to serious repercussions and huge fines.
- It's a Requirement of the Law
Under the Tax Code, all corporations, companies, partnerships, or persons required by law to pay internal revenue taxes shall keep and use relevant and appropriate set of bookkeeping records wherein all transactions and results of operations are shown and from which all taxes due may readily and accurately be determined any time of the year. Therefore, it is not an option whether you have to keep a record or not.
Peace of Mind
Once you truly understand how important bookkeeping is, it can give you peace of mind. You can rest easy knowing that your business is running smoothly, and that you have a clear financial picture of your company's performance.
Conclusion
Bookkeeping is not just another task to add to your to-do list. It is a vital part of your business that you should take seriously. By keeping accurate and up-to-date records, you can stay organized, make informed decisions, and keep your business on track. Don't wait until it's too late. Start taking bookkeeping seriously today.
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The real question is, are you ready to make the switch and experience the ease and efficiency of automated bookkeeping, or will you continue to waste valuable time and resources on manual processes? The choice is clear. Upgrade to YBO bookkeeping today and watch your business thrive. Contact us today at marketing@abba.works or call us 09177721087