Bookkeeping is part of the accounting process and crucial for your business. Small and medium businesses should have a set of books that are updated simultaneously each day. The tax agency would not be happy to see records which were only organised at year’s end.
Tax preparation is not the only reason why you have to keep sets of books. It is also essential to know how much you earn for a day, week or month and how much you spend for the expenses of the business. It can also be used to compare the results to the standards of the industry to identify if changes are required for your enterprise. These sets of books also allow you to compare your earnings and expenses from last year to determine how much your business has progressed. It is also vital for financial statements if you apply for a business loan.
This is the importance of integrating bookkeeping software than merely using spreadsheet to generate reports when needed. However, if you are not skilled enough in this area of accounting you have to hire someone who does it professionally. Payroll, credit card usage and reconciliation of accounts could be out of your league, so don’t do it alone. You have three options – hire a CPA, use bookkeeping software or outsource the task.
Whichever you choose, your choice should be reliable and trustworthy. Select one that has already established name in the bookkeeping industry. The person or the software must function as expected and generate accurate results for your convenience. Bear in mind bookkeeping can prolong your stay in the marketplace.