It is easy to get caught up in your day-to-day business activities and forget that you need to keep accurate records.
That’s where accounting comes in. It helps to keep you organized so that the information you need is readily available. There is a difference though, between bookkeeping and accounting.
Accounting Helps to Make Sense of Your Business
Bookkeeping is concerned with the administrative and transactional aspects of your business. Once the transactions are recorded by a bookkeeper, accounting helps you to make sense of the information.
It helps you to make decisions and is an important tool to help you understand what is going on in your business. Accounting records help to ensure that your cash flow is positive and alert you early on that there might be a problem. You can then use that information to change course or make arrangements to ensure that your business has the resources it needs.
The IRS Requires Your Accounting Records
The IRS is also interested in your accounting records. They need schedules to support your tax returns as well as access to financial statements that determine the profitability of your business. Without a robust accounting system, you will struggle to satisfy the IRS’s demands for information.
The Banks and Investors Need Your Financial Statements
When you require a business loan or go looking for investors, the first thing they’ll be interested in is looking at your financial reports. These are compiled using your accounting system.
No records, no money!
Management Accounts Help You to Manage Your Business
Your accounting system also helps to keep you accountable. The timely recording of transactions and their effect on your profitability and cash flow will determine the success or failure of your business.
By recording your actual figures against a budget or projection, you’ll be able to measure your results and see whether your strategies are working.
Moses Nae, CEO of TaxLeaf, Contador Miami, and the founder of Contador America is passionate about helping business owners maximize their business potential.
It is crucial that you consult with a knowledgeable and experienced accountant to help guide you through the various stages of growth in your business.
Here’s what one of our successful business owners has to say about the service and support they receive from being partnered with TaxLeaf:
Cesar Buenavista, Doral, Fl
“I am an Account Manager with TaxLeaf and have been working with clients for more than 6 years. The technology they provide is incredible. I have access to everything from my phone if I need it. They are very professional and provide excellent support for me and my employees.”
To help you learn more about how TaxLeaf can assist you with your bookkeeping and accounting needs, stop what you’re doing right now and click the link below.
Or call us now to secure a FREE 30-Minute Consultation with one of our accounting experts.