Why is it important to keep records? This is because it helps you identify the sources of your income and help you in deciding whether you should apply for a GST/HST.
Whether you are doing your own bookkeeping or you are having a professional do it for you. It’s best that you know the basics of how to tidy your record keeping.
Most business owners get overwhelmed with invoices, receipts, and statements which leads to a bad habit of not recording accurately. As everyone in the business is looking for growth, learning, and understanding how to correctly record transactions gives integrity to your books which will help you figure out if the business is profitable. Make sure your books are all neat and tidy!.
Have a close look at your accounts and find out which ones are tidy and what accounts are messy so you can
start putting an effort to clean it up. Determine the state of your financial affairs. Do you have a steady flow of
income? Or is your cash balance growing? Then that means your financial health is in good condition. If it’s the
other way around, you can cut on expenses, create a budget you can stick to so you can pay down your debts.
You don’t want to lose invoices and get in trouble with your auditors. Proper safekeeping of your receipts and invoices makes you more compliant!
You might be an excel wizard or good in maintaining hard copies but as your business grows, Bookkeeping may
get complicated and it may require more time having single transactions recorded in multiple accounts. There is
various Free and paid accounting software that saves you from the hassle of keeping all your transactions
recorded fast, easy, and reliable.
All business owners can take charge of their taxes without knowing that it could be cheaper if they hire a
professional to do it. Tax professionals or accountants definitely know the ever-changing tax law. They can tell
you which deductions you can claim and how you can lower your tax rates without breaking the rules.
Bookkeeping is your business’s best friend. It will tell you not just the good sides of the business but it will also
show the worst part of it. It also helps you which part of the business needs more effort and which ones are no
longer needed. Bookkeeping tells you everything you need to know about your business to give you a good
overview of your financial standing and a wide-angle of the business’s strengths and weaknesses so you can plan
for better and bigger business