Why is bookkeeping important for businesses?

Bookkeeping is an essential aspect of any business, no matter how small or large. It is the process of recording all financial transactions that occur within a business, including sales, expenses, and payments. Accurate and up-to-date bookkeeping provides a clear understanding of a company's financial situation, which is critical for making informed business decisions. Bookkeeping can help businesses keep track of their financial resources and ensure that they are being used efficiently. It also allows businesses to identify potential issues early on, such as cash flow problems or irregularities in financial records.

Furthermore, proper bookkeeping can be crucial in ensuring that a business stays in compliance with various legal and regulatory requirements. For example, many tax authorities require businesses to keep detailed records of their financial transactions for a certain period of time. Failure to do so can result in penalties or legal issues. Additionally, bookkeeping can help businesses plan for the future, by providing data on revenue, expenses, and profits. This information can be used to create budgets, forecasts, and financial reports that can guide business decisions and help businesses grow and succeed. In summary, bookkeeping is an essential part of any business operation, helping businesses manage their financial resources, comply with legal requirements, and plan for the future.

About the app

As an Entrepreneur I know that the first step to legally minimizing your tax burden is to have properly prepared financial statements and supporting documentation (receipts). That way your CPA or tax advisor can more accurately guide you regarding the options you have.

In the past the bookkeeping services that I hired left a lot to be desired. My expenses where not categorized appropriately, my receipts were not being saved and matched to the expenses I was reporting.

So I decided to build the bookkeeping service I wish I would have had In the process I also learned to appreciate the insights that properly prepared financial statements can give you as Chief Executive of your organization.

I enjoyed the dual benefit of knowing I would never be intimidated by the threat of an audit again, because I was prepared; and I could also reap the rewards of knowing the true financial performance of my organization.