As a small business owner, do you have file folders filled with receipts for expenses and invoices that you haven’t inputted into an accounting system? Do you have people who owe you money, because you haven’t taken the time to invoice them? When you want to make a business purchase, how do you know if you will have sufficient funds to cover the cost? Keeping accurate financial records is a must if you want your small business to be successful.
Otherwise, how do you know what to do when you don’t know where you stand?
Bookkeeping is more than just keeping track of the flow of money in and out of your business. While it does help you stay on top of who owes money to your business and who your business owes money to in return, it also helps you monitor business assets like equipment. While bookkeeping is essential in making sure you have the necessary records for tax time, it also can help you make important business decisions by providing needed financial details about your company. That way you’ll know things like what products are selling or if your current expenses are providing you with a return on investment. Then you can decide whether it’s time to expand your business or cut back on certain expenses.
What should your company track through its bookkeeping system? Everything!
- Accounts receivable – who owes the business money and what’s been paid to the business.
- Loans – how much your company has received and what it’s paid back
- Petty cash withdrawals
- Expenses – including all receipts, bills and statements
- Bank statements, credit card statements and other financial documents
- Taxes – payroll, sales and estimated taxes
- Mileage and auto expenses
If tracking all of this information seems unwieldy, it’s time to consider hiring an experienced bookkeeper to manage your books. The bookkeeping services offered by The Payroll Department can help save you time and money – the time and money you would spend trying to do your business books by yourself.
Not only will our bookkeeping services help you manage your books more efficiently, but we can provide you with financial reports to help you analyze the financial state of your business. By knowing if you’re operating in the black, you can make important decisions about the future direction of your business. When you stay on top of your small business’s financial information, you can increase the likelihood of your business’ success.
-Ariane of The Payroll Department Blog Team