Bookkeeping is one of those tasks that most business owners dread. It is a lot of work that requires constant attention to keep on top of it. This is often why so many business owners end up with books that are unorganized and less than accurate. There are several problems that can arise when your books are a mess though. Mark Dicus & Company is here to talk about the many different areas of your business that can struggle when you aren’t staying on top of your bookkeeping.
What is the Impact of Bookkeeping in Business?
Even though bookkeeping might not be your favorite part of owning your own business, it is absolutely essential. There are several aspects of your business that can be negatively impacted by messy and unorganized books.
– Taxes: No one wants to pay more taxes than they have to. When you don’t have organized books, that might be exactly what you end up doing. If you don’t have expenses in the right spot, have over or underestimated your income, and other bookkeeping mistakes, you will be left paying more taxes or with audits and fines that you’re dealing with.
– Payroll: Obviously, your bookkeeping is going to directly affect your payroll. You might be overcompensating or under compensating your employees and you could have no idea you’re doing it. When you’re making mistakes that impact your employee’s W-2s, it can also impact your taxes as well.
– Loans & Financing: There will more than likely be times when you need to seek out financing for your business. It can make it far easier to get the financing that you’re in need of when you have organized bookkeeping. The books for your business are going to be the most sought after documentation for any investor or lender.
– Audits: When your books don’t quite add up, it can raise suspicion with the IRS. This will make you more likely to be audited if you things aren’t quite adding up. There could be multiple penalties and a long and drawn-out ordeal when you don’t have the bookkeeping to back up your tax records.
– Budgets: Any successful business plan is going to involve a budget. It can be difficult to stick to a budget and even put one in place when you aren’t staying on top of your bookkeeping. You may think that you’re doing well at sticking to a budget when you are really allowing things to fall through the cracks and blowing the budget out of the water. Another area where records are important.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are having a difficult time with your bookkeeping, you can turn to Mark Dicus & Company to help you keep things sorted out and organized. It is essential to the success of your business to keep your books organized and properly record all the ins and outs of your business. Call us today!