The Importance of Bookkeeping for Small Businesses
Every company is supposed to be accountable for all of their financial transactions. This way, they will know whether they are profitable or not. They will know whether they need to make improvements or adjustments. It is also important to keep accounts in order so that when the taxman comes calling, you’ll be ready. This could aid in avoiding penalties and delays with tax returns. Why is bookkeeping important for small businesses?
The Importance of Bookkeeping for Small Businesses
Avoid a CRA Audit
Businesses are audited every now and then by the Canada Revenue Authority, and they intend to become even more aggressive at it. the funding of the audits went up by $100, meaning that they could be knocking at your door anytime. Keeping proper financial records is bound to keep you out of trouble.
Limit the Pain of an Audit
If the records of a company are not in perfect order, chances are that when the CRA auditors come calling, the company could lose a lot of time as they straighten things out.
Avoid CRA penalties and sanctions
The chances of getting penalties and sanctions are higher when the financial records aren’t properly kept.
Don’t Miss Deductions
If the bookkeeping isn’t up to speed, it could lead to missing out on tax deductions. The tax deductions could be stopped.
Save Time
Doing your accounts and bookkeeping in advance saves the last minute dash to file your returns and submit the GST/HST remittance. The best way to do this is to record the accounts on the go, as you work.
Keep a Clear Picture the Company’s Financial Health
Every business wants to make profits but in order to know whether they are making profits or losses, they need to have clean financial records that monitor all the money coming in and going out. This is also important when you want to take a loan for the business, or even if you’re considering selling the business. This is because the potential buyers would want to see the past performance of the company.
Irena’s XERO Bookkeeping, Sydney
Accounts and bookkeeping can feel like a mountain of work for many. Numbers aren’t everyone’s cup of tea unless they are counting the pennies that their businesses have brought in. accounts and bookkeeping is something that every business should prioritize. In the event that they don’t have people to do it, one can get an online xero bookkeeper like Irena’s XERO Bookkeeping. The company works with software like Xero, MYOB, and Quickbooks, and others. Irena’s Bookkeeping is a company that deals with small and medium sized businesses, identifying, reporting, and implementing efficiency improvements when approved. Their services include:
- Set-up and data entry
- Accounts Payable
- Accounts Receivable
- Inventory Control
- Month and Year End Accounts
- Monthly and Annual Reporting
- Bank and Credit Card Reconciliations
- Debt collection
- Invoicing
- Manual Bookkeeping
- Filing and Administration
Irena’s XERO Bookkeeping work with other companies at the client’s convenience. The client gets to choose the schedule that best suits them, whether weekly, monthly, biannually, etc., depending on the volume of work. One can get a free quote by filling in an online form.
Summary
Every business should make sure that their financial records are in good health, for the reasons mentioned above. Companies like Irena’s XERO Bookkeeping are there to take the load off businesses when it comes to accounting and bookkeeping.