Importance of Good Bookkeeping Services
Many small business owners fail to recognize the importance of bookkeeping. Many believe that their current cash position is the only important financial measurement and they fail to recognize the critical data that is available in monthly financial statements. The foundation of accurate financial statements is timely, accurate bookkeeping services.
Bookkeeping services include customer billings, customer collections, vendor payables, payroll processing and bank account reconciliation. Some important benefits of consistently maintaining your accounting records include:
Improved revenue recognition and quicker conversion of accounts receivable to cash
Better measurement of spending allowing for better cash management
Real time access to account balances including credit cards, credit lines and bank accounts
Readily available customer and vendor records
Better customer and vendor relationships
Clear, concise transaction detail for financial statement preparation
Reduced time required for tax return preparation
Many business owners take on these responsibilities during the start-up phase of the business thinking it is a simple process and they can save time and money. However, the entrepreneur is also focused on running the business and the daily issues that face a growing business. Accounting can often become the lowest priority. Recognizing the importance of accounting data for both day to day decisions and long term planning can result in better decisions and more efficient operations. It can also be very expensive to “catch up” historical data when bookkeeping services have been neglected. Recognize the importance of timely, accurate bookkeeping services. Bring in that resource and free yourself to focus on the success of the business!