Every successful business owner should understand the importance of proper and accurate bookkeeping. Keeping accurate and concise records has intrinsic value to your business in the following ways:

  1. Well-kept records assist in audit circumstances. If your records aren’t complete and an auditor can’t determine your expenses and income to support your claims, they might be disallowed.
  2. Proper records may result in tax savings. Proper records serve as a reminder of the costs you’re permitted to deduct.
  3. Proper records assist with tax planning, financial projections, and budgeting. You’ll be better educated on the financial stance of your business as you keep accurate records and books.
  4. Proper financial statements, records, and books help to receive financing from creditors.
  5. Accurate records will keep you organized and will help to reduce stress.
  6. It is a legal requirement for every existing business to keep these records. Anything that can be used to support all claims that are made on tax returns and additional government paperwork must be kept, saved and made available as requested by the IRS.
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