3 Important Reasons for Keeping Good Bookkeeping Records

by DenverBookkeeper

Bookkeeping is an integral part of every business, but especially for a small business. Keeping good bookkeeping records can make the difference between thriving and losing your business through the cracks.

You need to make sure that you stay on top of your bookkeeping as a business owner regardless if you currently have an accountant who does the main records for you. Let’s start with the basics, accounts payable and accounts receivables.

Accounts Payables are the expenses that you have going out. These can be wages, taxes, supplies, internet, banking or any of a million other expenses small business owners incur. Accounts Receivable are outstanding bills you have sent which have not been paid yet. If you do not have an on staff bookkeeper, YOU need to make sure that what comes in and what goes out of your business is duly noted and that these expenses and credits are archived properly.

3 Important Reasons for Regulating Bookkeeping

Speaking of what goes out and what comes in, another important reason why bookkeeping should be done religiously and supervised closely is to keep balanced books. You need to make sure that your overhead expenses make sense and that the costs you have incurred are valid. There shouldn’t be “ghost payments” and whatever payments you receive should be properly credited to its payer.

One note about keeping your business books that many small biz owners forget is that aside from the tracking side of things for financial purposes, having good bookkeeping records can also help you in market research. Know your sales, when they occur and what their dollar values are is vital information for your sales funnel as well as pricing and inventory.

Lastly, keep up with your small business bookkeeping records more than once or twice a year will make sure that you know when it is time to outsource this function. If you are not proficient or spending too much time doing your books, it may be a sign that it is time to bring in a professional!

If you are looking for a professional Denver area bookkeeper please give us a “click”!

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