There are several menial tasks that come with owning and operating a successful business. A big one is bookkeeping. Just because you own a business, doesn’t mean you want to do all the behind the scenes things like accounting and bookkeeping. It can seem redundant, at best. However, neglecting this side of doing business can have heavy consequences. Mark Dicus & Company is here to talk about some of the risks that come with neglecting bookkeeping for your business.
Why You Shouldn’t Neglect Your Financial Records
The first time that you simply forget or fail to record a transaction in your business, it can seem harmless enough. However, if you are doing this on a regular basis, it can snowball into a huge problem. Here are some of the risks that come from neglecting your business financial records.
– Cash Flow Problems: Cash flow is the lifeblood of your business. Without it, you simply can’t function. If you don’t have an accurate picture of the cash that you have, you may end up overspending and getting your business into trouble. You need a certain amount of ash to cover the operational costs of doing business. Don’t let your picture of your cash flow become muddled.
– Unpaid Invoices: Another vital part to doing business is making sure that people are paying you and invoices are closed. When they fall through the cracks, you may have unpaid revenue that you need to keep the lights on. This is another part of bookkeeping that helps keep the cash flow records up to date.
– Too Many Expenses: All businesses are going to have expenses that are necessary to keep things running. However, if you aren’t doing bookkeeping, you may be overspending. This might look like duplicate payments, forgotten subscriptions, unchecked bank fees, and other oversights that can negatively impact your bottom line.
Tax Risks When Bookkeeping is Neglected
Another problem with bookkeeping neglect is tax season. There are tax implications that you aren’t going to want to deal with.
– Missed Deadlines: There are filing deadlines that you are going to be required to meet. When you don’t have bookkeeping under control, it can leave you filing late and dealing with the consequences.
– Incorrect Reporting: When your financial records aren’t accurate, it can lead to inaccurate reporting as well. When this happens, you are far more likely to get flagged for an audit or face fines.
– Audit Stress: No business owner wants to face an audit. When your bookkeeping is inaccurate, it is a worry and stress that you’ll carry for no good reason.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
When it comes to bookkeeping, you can turn to Mark Dicus & Company to keep it all straight for you. We will make sure your financial records are accurate making it easier for you to do business. Working with us will help you reach your financial goals. Call us today!