Significance of Bookkeeping
Bookkeeping is crucial to keeping your business organized. It helps in creating accurate budgets, provides information to make strategic decisions, tax return preparation, keeps track of the company's accurate financial records and much more. It is something you should consider to ensure your finances are in check and to make sure CRAB audit does not cause you any heartburn.
Here are 8 reasons why bookkeeping is important for your business:
1. Easier C.Audit
Bookkeeping plays an important role in an audit by Canada Revenue Agency because if your books are in order, it makes the process easier and quicker leaving less time for headaches, and more time for business growth. It is simple. Keep track of all your books consistently.
2. Effective Budgeting
Bookkeeping helps you budget accurately and proves to be a wonderful aid in the promotion of successful business. With your income and expenses properly organized, it is easier to assess your financial resources and fluids.
3. Keeps You Prepared for Tax-return
Bookkeeping makes filing a tax return quite straightforward. With a bookkeeping process in place, you will have financial information ready for tax season and you will not have to worry about struggling for receipts because all your records are already properly documented.
4. Ensures Records are Up to Date
Proper bookkeeping will ensure that your records are kept up to date. By doing your books often, staying on top of them, you will be able to maintain organized records, and this will help when it comes to applying for grants, loans, or even attracting investors.
5. Business Analysis
Business analysis is the practice of scanning the various pieces of your business to identify its strengths and weaknesses. Proper bookkeeping allows you to manage your cash inflows and outflows i.e.. profit and loss which translates into an easier time assessing your business needs. If your finances are unorganized, it is hard to tell where your company needs to improve.
6. Provides an Overview of your Business
Bookkeeping provides an overview of your business with financial statements like balance sheet, profit and loss statement, cash flows statement and so on. These statements provide all the required information and help to assess the performance of your business.
7. Gives You Extra Peace of Mind
Worrying about your taxes for CI, and getting audited can be stressful, let alone being a business owner. When your books are complete and tidy, they will not be keeping you up at night. You can be assured knowing that your business' financial records are ready to be reviewed without GRA giving you any anxiety and allowing your° focus on other areas of your business.
8. Hire a Good Bookkeeper and Get Advice When You Need It
At CID, we will listen to your concerns and give you financial and business guidance. Bookkeeping is our specialty, and we are here to help you grow your business. Hire a competent bookkeeper and give yourself your weekends back. If you are a small business owner looking for bookkeeping services, contact us and find out if we are a good fit.
Written by:
Ruchi Joshi
Bookkeeper at CID Bookkeeping